Debentures are vital debt instruments used by companies to raise capital. This article explores convertible debentures, bearer debentures, premium on redemption of debenture account, and compulsory convertible debentures, offering insights for informed investment decisions. Optifin advisors provide expert advice to help navigate these complex investment options.
Debentures are unsecured loans from investors to companies, offering regular interest payments and repayment of the principal at maturity.
These allow investors to convert their debt into equity shares at a set ratio, providing potential for capital growth alongside fixed income.
Ownership of these debentures isn’t registered but is held by whoever possesses the physical certificate, ensuring transferability and privacy for investors.
This is the extra amount paid by companies over the face value of debentures at maturity, incentivizing investors to hold their investments until maturity.
These must convert into equity shares at a specified time or under certain conditions, blending debt investment with future equity ownership.
Understanding these types of debentures equips investors with the knowledge to navigate fixed-income investments effectively, aligning with their financial objectives with the guidance of Optifin advisors.
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