Why do investors buy debenture?
Investors buy debentures primarily for their fixed income potential, as they offer regular interest payments, known as coupon payments, over a specified period. Debentures are generally seen as lower risk compared to stocks, providing a more stable investment option. Additionally, they can offer diversification in an investment portfolio, as they are typically less correlated with equity market fluctuations. Lastly, debentures can also have tax advantages, depending on the jurisdiction and specific terms of the bond.
Where can you redeem treasury investment growth receipt?
Treasury Investment Growth Receipts (TIGRs) can be redeemed at financial institutions that offer them, typically through brokers or banks that handle treasury securities. Investors can also redeem them directly at the U.S. Treasury if applicable. It's important to check with your financial advisor or the specific institution where you purchased the TIGRs for their redemption policies and procedures.
What do you mean by debenture and bond?
A debenture is a type of long-term debt instrument that is not secured by physical assets or collateral but is backed by the issuer's creditworthiness and reputation. Bonds, on the other hand, are broader financial instruments that represent a loan made by an investor to a borrower, typically a corporation or government, and can be secured or unsecured. Both debentures and bonds pay interest to investors, but debentures often come with higher risk due to their unsecured nature.
Why does Chevron has bonds issued with diffferent corporate names?
Chevron issues bonds under different corporate names primarily for legal and regulatory reasons, as well as to differentiate various subsidiaries or business units. This practice allows Chevron to structure its financing more effectively and manage risk by isolating liabilities within specific entities. Additionally, it may appeal to different investor bases, enabling targeted marketing of bonds based on varying investor preferences or regulatory requirements.
An interbank screen is a digital platform used by financial institutions to facilitate real-time trading and communication of foreign exchange rates and other financial instruments among banks. It provides access to live market data, allowing banks to quote prices, execute trades, and manage liquidity efficiently. Interbank screens enhance transparency and enable banks to respond quickly to market fluctuations, improving overall trading efficiency.
Which debenture companies does fraud?
While specific companies may be implicated in fraudulent activities, it's important to note that fraud can occur in various sectors and can affect any organization, including debenture companies. Investors should conduct thorough research and due diligence before investing, looking for red flags such as lack of transparency, unusual financial statements, or regulatory issues. Regulatory bodies like the SEC often monitor such companies, and past cases can provide insight into potential risks. Always consult financial experts or legal advisors if you suspect fraudulent activities.
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An alleged trade refers to a trade or transaction that is claimed to have taken place but has not been confirmed or verified. It is a trade that is reported to have occurred based on speculation or unverified information. Alleged trades are often subject to further investigation or scrutiny to determine their validity and authenticity.
What is optionally fully convertible debenture?
Optionally fully convertible debenture is an instrument that does not yield interest in the initial period of say, 6 months. After this period option is given to the holder of FCDs to apply for equity at a "premium" for which no additional amourit needs to be paid. The option has to be indicated in the application form itself. However, interest on FCDs is payable at a determined rate from the date of first conversion to the second / final conversion and in lieu of it, equity shares are issued.
How do I make a likert scale questionnaire?
A Likert Scale Questionnaire is one where the subjects are asked to mark how much they agree with the point of view in the item. Rensis Likert devised it first.
An item in a Likert Questionnaire could be "People who commit murder should be executed."
The format for a five-point Likert scale could be:
# Strongly disagree # Disagree # Neither agree nor disagree # Agree # Strongly Agree The results are either analyzed separately, or the whole scale may be totalled or summed. Because of this, Likert Scales are often called "Summative Scales".
What type of loan is a convertible debenture?
This is the type of loan which could be converted later into goods or stocks. This permits the company who takes the loan to pay less interest rest then if it was without this option of conversion.
A debenture is typically redeemed at its maturity date, where the issuer repays the principal amount to the debenture holder. This can occur through a lump-sum payment or in installments, depending on the terms outlined in the debenture agreement. Additionally, issuers may have the option to redeem debentures early, often at a premium, under specific conditions. Redemption procedures and terms should be clearly stated in the debenture documentation.
What is debenture explain in simple term?
Debentures refers to discharging the liability on account of debentures in accordance with the terms of issue.
Did tata issue debenture in recent years?
Yes, Tata Group has issued debentures in recent years as part of its financing strategy. For instance, Tata Motors issued debentures to raise funds for various projects and to improve liquidity. These issuances help the company manage its capital structure and fund its operational needs. Specific details about the amounts and terms can be found in their financial disclosures.
If someone holds a debenture what can they do with it?
With a debenture, a company can hold a debt with another. A debenture is a loan agreement where there is no collateral or assets involved. It is based on the promise and credit history of the company that it will be paid back.
Why companies issue debentures?
Companies issue debentures to raise long-term capital without diluting ownership, as debentures are a form of debt financing rather than equity. This allows them to fund expansion projects, refinance existing debts, or invest in new opportunities while maintaining control over the company. Additionally, interest payments on debentures are tax-deductible, which can provide financial advantages. Overall, issuing debentures can be a strategic move to leverage growth while managing financial obligations.
What do you mean by ex-interest in issue and redemption of debentures in company account?
Whan compay purchase debenture from the open market
What is difference between equity and preference share?
ood job on your time line in 1763 the answer is they are all the same
Which companies have issued debentures in recent year?
reliance industries reliance industries reliance industries
Do preference shares included in equity?
Preference shares are typically classified as equity on a company's balance sheet, as they represent ownership in the company and can provide dividends. However, their classification can depend on specific terms and conditions; for instance, if they have characteristics similar to debt (like mandatory redemption), they may be classified as liabilities instead. Overall, in most cases, they are included in the equity section of financial statements.
The view that separate accounting recognition should be accorded the conversion feature of convertible debt is based on the premise that there is an economic value inherent in the conversion feature or call on the common stock and that the value of this feature should be recognized for accounting purposes by the issuer. It may be argued that the call is not significantly different in nature from the call contained in an option or warrant and its issue is thus a type of capital transaction. The fact that the conversion feature coexists with certain senior security characteristics in a complex
security and cannot be physically separated from these elements or from the instrument does not constitute a logical or compelling reason why the values of the various elements should not receive separate accounting recognition. The fact that the eventual outcome of the option granted the
purchaser of the convertible debt cannot be determined at date of issuance is not relevant to the question of effectively reflecting in the accounting records the various elements of the complex document at the date of issuance. The conversion feature has a value at date of issuance and should be recognized. Moreover, the difficulties of implementation are not insurmountable and should not be relied upon to govern the conclusion.
What is the secured redeemable non convertible debenture?
Type your answer here... debenture, which is secured and redeemable and which is non convertible in future is called secured redeemable non convertable debenture