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Question
Answer briefly of the following question :
State any two reasons for a company to purchase its own debentures from the open market.
Solution
The company may purchase its own debentures in the open market with the objective of:
(i) Immediate cancellation
(ii) Keeping them as investments (to be cancelled at a later date).
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Problems on Issue of Debentures
Is there an error in this question or solution?
