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What is the difference between conversion and redemption of debentures?
Conversion of debentures refers to the process by which debenture holders can exchange their debentures for equity shares of the issuing company, often at a predetermined conversion ratio. Redemption, on the other hand, involves the repayment of the debenture's face value to the debenture holders at maturity or upon a specified date, without converting them into shares. Essentially, conversion changes the nature of the investment from debt to equity, while redemption involves settling the debt obligation in cash.
Why preference share is known as Hybrid security?
Pref. Share are combination of equity & debt. They receives interest like bond. And treated as capital stock in b/s. It can be converted into equity or debenture thats why it's called hybrid security
How can a company rise capital?
Company can mainly raise its capital by issuing equity or debt instrument e.g stocks bonds preference share debenture loans etc
What is an description of equity?
Equity is the dollar amount of value in an investment. It can be more or less than the actual amount paid for the item.
What is redemption of debenture?
Redemption of debentures refers to the process by which a company repays the principal amount of its debentures to the debenture holders at or before the maturity date. This can occur through various methods, such as lump-sum payment, periodic repayments, or conversion into equity shares, depending on the terms outlined in the debenture agreement. Timely redemption is crucial for maintaining investor confidence and adhering to legal obligations, as it signifies the company's financial responsibility.
What is financial listing?
listing in secondary market either equity or debt(debenture) is known as financial listing
What are the 7 current liabilities?
Equity shares, debenture, secured loan, non secured loan, borrowings, reserves , retained earnings
What are the 7 non current liabilities?
Equity shares, debenture, secured loan, non secured loan, borrowings, reserves , retained earnings
What are the Merits and demerits of debentures?
Hi merit of dbenture - trading on equity is possible as debenture holders get a lower rate of return than the earnings of the company. demerit of debenture-cost of raising capital through debentures is high of high stamps duty.
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).
Why preference share is known as Hybrid security?
Pref. Share are combination of equity & debt. They receives interest like bond. And treated as capital stock in b/s. It can be converted into equity or debenture thats why it's called hybrid security
What is a debenture certificate?
it is a document that serve as evidence of a debenture for a debenture share holder
What is debenture certificate?
it is a document that serve as evidence of a debenture for a debenture share holder
How can a company rise capital?
Company can mainly raise its capital by issuing equity or debt instrument e.g stocks bonds preference share debenture loans etc
What is an description of equity?
Equity is the dollar amount of value in an investment. It can be more or less than the actual amount paid for the item.
Solve questions of debenture in advance accounting?
what is debenture
How much equity could you borrow on a 250000 home?
Equity is value in an item over and above what is owed. If you have a $250000 home and owe $250000 then you have no equity to borrow. If you owe $100000 then you have $150000 equity that you may be able to borrow against.
