What is the key difference between gilt-edged s... - SS3 Commerce Securities; meaning, types, shares, stocks, bonds, gilt-edged and debentures. Question
What is the key difference between gilt-edged securities and debentures?
Gilt-edged securities are debt securities issued by governments and are considered low-risk investments. They pay fixed interest payments and are backed by the government's creditworthiness. On the other hand, debentures are long-term debt securities issued by companies, paying interest to investors. They represent company debt and are not backed by specific assets.
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