Debenture Replace Words For Free

What Is a Convertible Debenture? 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 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.

A compulsory convertible debenture is a bond that investors need to convert into stock after the expiry of its maturity period. It helps a company by enabling them to repay their debt without spending cash and benefits investors in the face of fixed interest and later ownership of the company share.

A convertible debenture can be transformed into equity shares after a specific period. The option of converting debentures into equity shares lies with the holder. A convertible debenture will provide regular interest income via coupon payments and repayment of the principal amount at maturity.

It means that for every debenture of Rs. 1,000 denomination, you will get 20 equity shares. The issuer decides the conversion ratio at the time of the debenture issue. You have the right to hold on to the debenture till maturity and not convert it into equity.

A debenture is a marketable security (a type of investment) issued by a business or other organization to raise money for long-term activities and growth. It is a form of debt capital so it is accounted for as debt on the balance sheet of the issuing company.

A debenture is an instrument used by a lender, such as a bank, when providing capital to companies and individuals. It enables the lender to secure loan repayments against the borrower's assets even if they default on the payment. A debenture can grant a fixed charge or a floating charge.

Debenture bonds are liabilities of the company because they represent debts that will have to be repaid in the future. Liabilities are shown on the balance sheet as either current liabilities or long-term liabilities.

In addition to current fixed assets, a debenture may place a blanket lien on any fixed assets the borrower may acquire at a later date. With companies with high property holdings, such as real estate investment trusts, the mortgage debenture may also cover intangible assets, including property management agreements.

In a finance transaction, a debenture is a way for a borrower to grant a security interest in real property to a lender.It creates a promise to pay, a charge over the property and a floating charge over all present and future real and personal property of the borrower.