Q42
Which of the following is not an ownership security?
A.
Equity shares
B.
Preference shares
C.
Debentures
AnswerD.
Both B and C
Answer: Option C
Solution
Answer: Option C
Solution:
Debentures is not an ownership security. A debenture is a type of debt instrument that is not secured by collateral and usually has a term greater than 10 years. Debentures are backed only by the creditworthiness and reputation of the issuer. Both corporations and governments frequently issue debentures to raise capital or funds.