Which debentures can be converted into shares after a specific period?
Answer & explanation
Correct answer: option 2
The debentures that can be converted into shares after a specific period are typically referred to as "Convertible Debentures." These are a type of debenture that comes with an option for the debenture holder to convert them into company shares after a predetermined period, as specified in the terms of the debenture issuance. This conversion feature allows debenture holders to potentially become shareholders of the company if they choose to exercise their conversion rights.