Question

Convertible Debentures are those debentures which are -

• A. convertible into equity only at the point of debenture holders.
• B. convertible into equity shares only at the option of company only.
• C. convertible into equity shares only at the option of debenture holders or company.
• D. convertible into any securities at the option of debenture holders or company.

Answer 1

The correct option is D convertible into any securities at the option of debenture holders or company.

A convertible debenture is a type of long-term debt issued by a company that can be converted into stock after a specified period. Convertible debentures are usually unsecured bonds or loans meaning that there is no underlying collateral connected to the debt.