| Commentary

4 Debentures and debenture stock

| Commentary

4 Debentures and debenture stock

Whilst a company may borrow on the security of a legal mortgage or in any other way (subject to any restrictions contained in its articles of association), the form of security most commonly adopted is that of debentures or debenture stock1. Debentures and debenture stock afford opportunities for raising funds more easily, because the risk may be spread without one individual or company taking the whole burden of the loan and the consequent risk of failure of the venture for which the loan has been raised. The issue of a number of debentures

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