Which source of finance is preferred by investors who want fixed income at lesser risk.

Question

KollegeApply · Accepted Answer

Debentures Explanation: Investors who want a fixed income with lesser risk prefer debentures because: • Debenture holders receive fixed interest at a predetermined rate. • They have priority over shareholders when it comes to interest payments and repayment of capital. • Debentures are considered safer investments compared to shares, especially in companies with a strong credit rating.

AChoose Your Answer