Debentures: Exactly What Are They and just how Do They Work?

Convertible debentures

A debenture that is convertible convert into equity shares for the issuing company after a lot of time. It is a proposition that is attractive investors, and will be offering low interest for businesses trying to raise money.

Non-convertible debentures

A non-convertible debenture doesn’t convert into equity within the issuing business. But, it often provides a greater rate of interest compared to a convertible debenture, rendering it a more costly type of money for businesses.

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