Debentures are long-term debt instruments issued by corporations or governments to raise capital. Unlike bonds, debentures are not secured by specific assets and rely on the issuer's creditworthiness and general reputation for repayment. Debenture holders are creditors of the issuer and have a claim on its assets in the event of default. Debentures typically offer fixed interest payments at regular intervals until maturity when the principal amount is repaid. They are traded in the bond market and may be convertible into equity shares or callable by the issuer under certain conditions. Debentures appeal to investors seeking stable income streams and relatively low-risk investments compared to stocks. However, they carry credit risk, interest rate risk, and liquidity risk, depending on the issuer's financial health and prevailing market conditions.