Following is not a Fixed Income Bearing Security(a) Debentures(c) Pref

1.	Following is not a Fixed Income Bearing Security(a) Debentures(c) Preference SharesInterest is always calculated on theb) Equity Shares(d) Government security
Answer» Debentures is not a Fixed Income Bearing Security Explanation: Debenture is a MEDIUM- to long-term debt instrument used by large COMPANIES to borrow money, at a fixed rate of interest. Debentures are also known as a bond which serves as an IOU between issuers and purchaser. It is not SECURED by collateral. Since debentures have no collateral backing, debentures must rely on the creditworthiness and reputation of the issuer for support. Both corporations and governments frequently issue debentures to RAISE capital or funds. Option A is the answer.

Following is not a Fixed Income Bearing Security(a) Debentures(c) Preference SharesInterest is always calculated on theb) Equity Shares(d) Government security

Answer»

Debentures is not a Fixed Income Bearing Security

Explanation:

Debenture is a MEDIUM- to long-term debt instrument used by large COMPANIES to borrow money, at a fixed rate of interest. Debentures are also known as a bond which serves as an IOU between issuers and purchaser. It is not SECURED by collateral. Since debentures have no collateral backing, debentures must rely on the creditworthiness and reputation of the issuer for support. Both corporations and governments frequently issue debentures to RAISE capital or funds.

Option A is the answer.

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