I want to tell you about what are debentures. The long term financial commitment that is employed by the government and big companies to raise funds is known as debentures in financial terms. Usually, debentures also considered as bonds or shares that the 3rd party is issuing. Debentures are generally transferable and the owner or holder has full possession or right to sell the debenture at a profit. And debentures are completely taxable and any interest received is taxed federal, local, and state. And their coupon rates are higher.