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What are Convertible debentures? |
That can be converted into equity shares at the option of the company That can be converted into equity shares at the option of Debenture holders That can be converted into equity shares when the company defaults in interest payments That can be converted into equity shares when the company is running into profits at the option of shareholders |
That can be converted into equity shares at the option of Debenture holders |
A long-term financial instrument called a convertible debenture has an expiration date and can be converted into shares. Insofar as primary collateral is concerned, a convertible debenture is often an unsecured bond or loan. They are long-term debt securities that provide bondholders with interest payments. Convertible debentures have the distinction of being convertible into shares at predetermined intervals. By providing some security, it may help the bondholder mitigate some of the risks associated with investing in unsecured debt. These debentures are either fully convertible or partly convertible. |
