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A debenture can be nonconvertible or convertible. A nonconvertible debenture will not be converted into equity. It therefore commands a higher interest rate than convertible debentures. A convertible debenture can be converted into common shares of the issuing company after a predetermined time.

A compulsory convertible debenture (CCD) is a type of bond which must be converted into stock by a specified date. It is classified as a hybrid security, as it is neither purely a bond nor purely a stock.

A convertible debenture is a hybrid financial instrument that has both fixed income and equity characteristics. In its simplest terms, it is a bond that gives the holder the option to convert into an underlying equity instrument at a predetermined price.

A convertible debenture is a type of long-term debt issued by a company that can be converted into shares of equity stock after a specified period. Convertible debentures are usually unsecured bonds or loans, often with no underlying collateral backing up the debt.

Convertible debentures are issued by companies as a means of deferred equity financing in the belief that the present share price is too low for issuing common shares. These securities offer a conversion into the underlying issuer's shares at prices above the current level (referred to as the conversion premium).

Convertible bonds are corporate bonds that can be exchanged for common stock in the issuing company. Companies issue convertible bonds to lower the coupon rate on debt and to delay dilution. A bond's conversion ratio determines how many shares an investor will get for it.

Characteristics or Features of Debentures: (iv) A debenture holder is promised periodic payment of interest at a fixed rate and repayment of principal amount after specific period. (v) Debentures are generally secured by a fixed or floating charge on assets of the company.

A convertible debenture is a type of long-term debt issued by a company that can be converted into shares of equity stock after a specified period. Convertible debentures are usually unsecured bonds or loans, often with no underlying collateral backing up the debt.