Read the following facts about shares and debentures.

(A) Both shares and debentures can be issued by a company for raising long term funds.

(B) Both shares and debentures can be issued for consideration other than cash.

(C) Both shares and debentures can be issued at premium

(D) Debentures can be converted into shares and shares can be converted into debentures

(E) Dividend is paid on shares and debentures both

Choose the correct answer from the options given below :

(A), (B) and (C) Only

The correct answer is option (1) : (A), (B) and (C) Only

(A) Both shares and debentures can be issued by a company for raising long-term funds. (True)

(B) Both shares and debentures can be issued for consideration other than cash. (True)

(C) Both shares and debentures can be issued at a premium. (True)

• Statement (D) is false : Debentures can typically be converted into shares (convertible debentures), but shares are not typically converted into debentures.
• Statements (E) is false : Dividends are paid on shares, and interest is paid on debentures.

So, statements (A), (B) and (C) are true, and statements (D) and (E) are false