0
What is the difference between a convertible bond and a convertible debenture?
Wiki User
∙ 11y ago
A convertible debenture is a type of convertible bond. However, a debenture is unsecured debt, which means that there is no collateral for the bond. The alternative to a debenture would be a secured bond such as a mortgage bond that would be secured by real estate. If the company goes out of business, the collateral for the secured bonds would be used to pay off those bonds and the holders of the debentures would be paid from whatever is leftover. Most convertible bonds are debentures.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
Is your convertible debenture bond certificate worth anything?
yes
What is the Difference between a convertible debenture and a warrant?
A convertible debenture is a bond holding that has a certain right attached to it, usually a right to be converted over to stock if certain conditions are met. A warrant is another name for a "option" or "rights", in which a person holds a contract to either buy or sell a stock at a specific price.
What is bond that has no collateral called?
debenture
Is A debenture holder of the company a creditor of the company?
No, A debenture bond owner is just like any other bond owner. A debenture bond is an uninsured bond. The owner of a bond is just lending their money to a company for a long-term period. A bond is an example of a long-term debt. An owner of a company would be an example of an equity such as a stockholder (common, or preferred).
What are debenture bonds?
A debenture is a debt security, like a bond is, but unlike a bond a debenture is unsecured. However, the two terms are basically interchangeable--a lot of people call bonds debentures and debentures bonds.
Are all bonds convertible or are there special convertible bonds?
Not all bonds are convertible, in fact most are not. A convertible bond is a special bond with an option to exchange the bond for company stock under certain conditions.
What is the difference between a debenture and a bond?
Long-term debt securities issued by the Government or any of the State Government's or undertakings owned by them or by development financial institutions are called as bonds. Instruments issued by other entities are called debentures. The difference between the two is actually a function of where they are registered and pay stamp duty and how they trade. reference: http://www.fimmda.org/useful_links/faq.asp#p3
What is cb bond?
Maybe a Convertible Bond.
Is the term for a bond between two atoms that differ in electronegativity?
If there is a slight electronegativity difference, the bond is a nonpolar covalent bond. If there is a large electronegativity difference, it is an ionic bond. If the difference is somewhere between, it is a polar covalent bond.
What is a convertible bond?
In finance, a convertible bond is a type of bond that can be converted into shares of stock in the issuing company, usually at some pre-announced ratio.
How can the type of bond be predicted?
Ionic bond: the difference between electronegativities of the atoms is over 2.Covalent polar bond: the difference between electronegativities of the atoms is under 2.Covalent non-polar bond: the difference between electronegativities of the atoms is cca. zero
What is the difference between ionic bond and covalent bond?
Ionic bond: involve an electrostatic attraction between atoms.Covalent bond: electrons are shared between atoms.
