Debentures: A Financing And Investment Instrument Applied By Open Capital Level Companies

Abstract

The purpose of this article is to present the implications of the instrument known as debentures issued by publicly held corporations as a means of investment and capitalization. The offering of debentures in the financial market allows companies to raise funds and even legitimately increase their share capital. The research question guiding this study is: how can the issuance of debentures by publicly traded companies be understood as a mechanism for raising or seeking resources in the financial market? This is because the issuance of debentures can either contribute to corporate investment or lead companies to a greater level of indebtedness to third-party investors. Therefore, it is essential to establish a cost-benefit relationship and identify the most favorable market conditions, considering the possible investment risks. To address this question, the article draws on theoretical contributions that support the study of this topic. Consequently, the research is based on a bibliographic and descriptive methodology, aiming to consider the object of investigation and how it relates to publicly traded companies. Although this is an initial approach to the subject, which can be further explored through future studies, it presents a challenging issue that deserves attention and discussion within Law School curricula.