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Welcome to the article on convertible debentures in this article we will learn what are convertible debentures and how does it help the organization issuing the debentures as well as the investors who are investing in them.  Convertible debentures meaning :- Convertible debentures are one of the ways to attract investors and ensure the success of its debt issue let us understand how so the first question is what is convertible debentures? so a convertible debenture is a type of debenture that can be changed into a specified number of ordinary shares at the discretion of the owner of the debenture.  So let us take a quick example to understand the concept of convertible debentures so let's say that a company issues in LAC 12% convertible debentures and these debentures are of rupees 100 each and each of these debentures is convertible into two equity shares of rupees 50 each after two years from the date of allotment so basically at the time of issue of these convertible debentures

In this article, we will discuss debentures, types of debentures, advantages, and disadvantages. So what is debentures meaning?  A debenture is a dead instrument where a company can raise money through borrowing from the public in the past you may learn that how a company is a raising share fund through shares so there the company has to give the ownership to the shareholders whereas a company is not giving any kind of ownership to the debenture holders so this depends your holders are just our lenders to the business this is a simple explanation of debenture  Now let's go let's see the types of debentures.  The first type based on security. If the debenture is backed by the assets of the company it is called secured debenture here the secured debenture holder can claim the assets of the company if the company goes bankrupt whereas unsecured debenture holders are not getting they cannot claim the assets if they come to know if something happens to the company and the second cat

Here is the explanation of what are the debentures, what are the types of the debentures, and in what ways the debentures are issued so friends let's get started in this article we are going to learn the meaning of the debentures, features of debentures what are debentures and its types and types of issue debentures. Suppose a company wants to raise funds from the public but at the same time the company doesn't want to divide its own then the debentures are the best option for them to raise long term depth capital the debentures are the long-term fixed interest-bearing security issued by the company to raise funds it is a written acknowledgment of money borrowed by the company promising to repay it at a future date it is a document containing the terms and conditions like rate of interest repayment time securities offer etc.  Now come let's understand the features of debentures at the venture is a loan document which evidences our loan made to the company It is fixed inter

Debentures as a form of debenture vary but are generally structured in a similar way. The principal and interest rates on debentures are fixed at each maturing date. The principal and the interest rates will rise each year until it reaches a maximum level. At the end of the term, debentures will either be canceled or redeemed. Debentures meaning in accounting:- Debentures are debentures as defined by all legal precedents and accepted by all financial institutions. It also has a strong historic significance. The first public bond, which had many of the features of debentures, was issued in May 1346. It was called “privileges of debt” or “debentures.” At that time, debentures represented an extraordinary innovation and were used to finance the building of key French ports. The paper was called “deborieties.” The citizens were not required to pay in any particular amount at any specific date. Rather, they were required to pay a fixed sum at a given time in order to make the debenture val