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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.

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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.


What are the disadvantages of debentures?

Debentures hold greater risk because the company could eventually go out of the business. so this type of investment should be done very carefully.


How many types of Debentures with definition?

There are several types of debentures, primarily classified into two main categories: secured and unsecured debentures. Secured debentures are backed by specific assets of the issuing company, providing a safety net for investors, while unsecured debentures, also known as naked debentures, are not backed by collateral and rely solely on the issuer's creditworthiness. Other classifications include convertible debentures, which can be converted into equity shares, and non-convertible debentures, which cannot be converted. Additionally, debentures can be redeemable or irredeemable, depending on whether they have a fixed maturity date.


What is non-cumulative debentures?

Non-cumulative debentures are a type of debt instrument that does not accrue unpaid interest if the issuer fails to make interest payments during a specific period. Unlike cumulative debentures, which allow for the accumulation of missed interest payments that must be paid in the future, non-cumulative debentures provide no such benefit to investors. If interest is not paid, it is simply lost, making these debentures riskier for investors. They are often issued by companies looking to raise capital without committing to guaranteed future payouts.


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

interest paid for debentures is a/an

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.


What are the disadvantages of debentures?

Debentures hold greater risk because the company could eventually go out of the business. so this type of investment should be done very carefully.


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 many types of Debentures with definition?

There are several types of debentures, primarily classified into two main categories: secured and unsecured debentures. Secured debentures are backed by specific assets of the issuing company, providing a safety net for investors, while unsecured debentures, also known as naked debentures, are not backed by collateral and rely solely on the issuer's creditworthiness. Other classifications include convertible debentures, which can be converted into equity shares, and non-convertible debentures, which cannot be converted. Additionally, debentures can be redeemable or irredeemable, depending on whether they have a fixed maturity date.


What is non-cumulative debentures?

Non-cumulative debentures are a type of debt instrument that does not accrue unpaid interest if the issuer fails to make interest payments during a specific period. Unlike cumulative debentures, which allow for the accumulation of missed interest payments that must be paid in the future, non-cumulative debentures provide no such benefit to investors. If interest is not paid, it is simply lost, making these debentures riskier for investors. They are often issued by companies looking to raise capital without committing to guaranteed future payouts.


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

interest paid for debentures is a/an


What is right debentures?

Right debentures are a type of debt instrument issued by a company that allows existing shareholders to purchase additional debentures at a predetermined price, typically during a rights issue. This gives shareholders the opportunity to maintain their proportional ownership in the company while providing the company with capital for financing. Right debentures often come with specific terms regarding interest rates and maturity, and they may be convertible into equity under certain conditions.


What is debentures and its types?

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.


Discount on issue of debentures is a?

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


Which Indian companies have recently issued debentures?

recently which industry/company had issued its debentures


Which Indian companies recently issued debentures?

recently which industry/company had issued its debentures