Week 13 - Introduction to Loan Capital Flashcards
1
Q
If you can raise by shares, what’s the other way of raising?
A
Borrowings
2
Q
What can be used as loan security?
A
A company’s assets
3
Q
Define what a debenture is
A
A debenture is written evidence of a secured loan to the company
4
Q
Define what a single debenture is
A
A loan to the company from any person or organisation, usually a bank
5
Q
Define debenture stocks
A
Those that are offered to the public through the Stock Exchange
6
Q
How are debenture holders protected?
A
Companies creates trust with control over company’s assets
