Issue of debentures

Debentures are a type of debt security issued by companies or governments to raise capital. Investors purchase debentures, effectively lending money to the issuer in exchange for periodic interest payments and the return of the principal at maturity. Unlike stocks, debentures do not confer ownership rights and are typically secured against the issuer's assets. They are considered a relatively low-risk investment compared to equities, but they do carry credit risk depending on the issuer's financial stability.