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Q: Why is convertible bond are classified as debt securities?
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Why would one need debt securities?

Most debt securities are traded electronically. Debt securities are usually in the form of bonds. They can be a government sponsored bond, corporate bond, or a municipal bond.


What does the term bond funds refer to?

Bond funds refer to debt investments. Debt investments are mortgage securities and goverment. In other words it invested in some sort of debt.


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.


What are Global equity and bond funds?

Global equity and bond funds maintain a portfolio of securities and debt instruments traded worldwide


What is the common definition of convertible debt?

A convertible debt is often a term heard in the finance business. By definition is it a type a bond, which has a maturity of 10 years or more, which is then converted into stocks or cash of equal value.


What is the difference between a convertible bond and a convertible debenture?

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.


What is Euro Convertible Bond?

A convertible bond is a bond that can be converted into a predetermined amount of the company's equity at certain times during its life, usually at the discretion of the bondholder. An Euro convertible bond is a bond issued by a company in a market other than its country of operation. Certain countries do not permit issue of ECBs by its companies since till the time of conversion the amount will add to the external debt of the country.


What is capital marcket?

It is defined as a market in which money is provided for periods longer than a year. The capital market includes the stock market (equity securities) and the bond market (debt). Capital markets may be classified as primary markets and secondary markets. In primary markets, new stock or bond issues are sold to investors via a mechanism known as underwriting. In the secondary markets, existing securities are sold and bought among investors or traders, usually on a securities exchange, over-the-counter, or elsewhere.


Trading securities are debt securities that the investor has the intent to hold to maturity?

trading securities are not necessarily debt securities. trading securities can be defined as securities which investors buy for the purpose of further trade, they can be stocks of any companies, Government securities and debt securities with the intention to trade in near future. debt secrities can be trade or can be hold by investor till maturity. Government securituies can also hold till maturities.


What is a War Loan Bond?

A war loans are debt securities issued by a government for the purpose of financing military operations during times of war.


What is the corporate bond market?

The bond market (also known as the credit, or fixed income market) is a financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the Secondary market, usually in the form of bonds.


Is the government bond the same as the fixed income securities?

Fixed Income Securities are investments in which the income or interest earning is fixed and can be predicted accurately. Bonds & Debt Mutual funds would come under Fixed Income Securities. Government Bonds are also one among the many Fixed Income Securities available for us to invest.