What are Debentures and Their Types

The term "debenture" is derived from the Latin word 'debere' which means to owe a debt. A company may raise part of its capital by obtaining loans. The short term capital is mostly met by the company from the banks in the form of overdrafts and cash credits. The long-terms may be raised by issuing of debentures. Debenture thus is a long-term finance raised by a company through public borrowing.