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Debentures are long-term financial instruments used by companies to raise capital, representing a loan made by investors to the issuer. They typically pay a fixed rate of interest and are secured against the company's assets or may be unsecured. The main types of debentures include convertible debentures, which can be converted into equity shares; non-convertible debentures, which cannot be converted; and redeemable debentures, which are repayable after a specified period, as opposed to irredeemable debentures, which have no fixed maturity date.

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What are examples of Debentures?

Debentures are a type of debt instrument that companies issue to raise capital, representing a loan made by investors to the issuer. Examples include convertible debentures, which can be converted into equity shares, and secured debentures, which are backed by specific assets of the company as collateral. Other types include unsubordinated debentures, which have priority over other debts in case of liquidation, and zero-coupon debentures, which do not pay interest but are issued at a discount to their face value.


Why are the type of debentures?

Debentures are categorized based on various characteristics, such as security, convertibility, and redemption. Secured debentures are backed by collateral, while unsecured debentures rely on the issuer's creditworthiness. Convertible debentures can be transformed into equity shares, while non-convertible debentures cannot. Additionally, redeemable debentures have a fixed maturity date for repayment, whereas irredeemable debentures do not have a set repayment term.


How is interest paid on debentures is shown in Financial statments?

interest paid for debentures is a/an


Which Indian companies have recently issued debentures?

recently which industry/company had issued its debentures


What types of firms would be most likely to issue debentures?

Firms that are well-established and have stable cash flows are most likely to issue debentures, as they can provide the assurance needed to attract investors. Companies in capital-intensive industries, such as utilities, telecommunications, or manufacturing, often issue debentures to finance long-term projects or expansions. Additionally, firms seeking to take advantage of favorable interest rates may also opt for debentures to raise funds without diluting equity.

Related Questions

What are examples of Debentures?

Debentures are a type of debt instrument that companies issue to raise capital, representing a loan made by investors to the issuer. Examples include convertible debentures, which can be converted into equity shares, and secured debentures, which are backed by specific assets of the company as collateral. Other types include unsubordinated debentures, which have priority over other debts in case of liquidation, and zero-coupon debentures, which do not pay interest but are issued at a discount to their face value.


Why are the type of debentures?

Debentures are categorized based on various characteristics, such as security, convertibility, and redemption. Secured debentures are backed by collateral, while unsecured debentures rely on the issuer's creditworthiness. Convertible debentures can be transformed into equity shares, while non-convertible debentures cannot. Additionally, redeemable debentures have a fixed maturity date for repayment, whereas irredeemable debentures do not have a set repayment term.


What are the risk relating to the debentures?

What are the risk relating to th debentures?


How do you make debentures more popular.?

the companies that have issued debentures in recent years.give suggestions to make debentures more popular?


How is interest paid on debentures is shown in Financial statments?

interest paid for debentures is a/an


Types of fixed income?

Immediate answer coming to my mind is Bank deposits. Debentures and preference shares also fall under this category.


Which Indian companies have recently issued debentures?

recently which industry/company had issued its debentures


Discount on issue of debentures is a?

capital loss to be written off over the tenure of the debentures .


Which Indian companies recently issued debentures?

recently which industry/company had issued its debentures


What types of firms would be most likely to issue debentures?

Firms that are well-established and have stable cash flows are most likely to issue debentures, as they can provide the assurance needed to attract investors. Companies in capital-intensive industries, such as utilities, telecommunications, or manufacturing, often issue debentures to finance long-term projects or expansions. Additionally, firms seeking to take advantage of favorable interest rates may also opt for debentures to raise funds without diluting equity.


What is redeemable non convertible secured debentures?

history of secured redeemable non convertible debentures


What is the difference between bearer debentures and convertible notes?

Differentiate between a bearer debentures and convertible notes