What is a Debenture? How many types of debentures are there? What are they?



What is a Debenture? How many types of debentures are there? What are they?..

Answer / deepak

A debenture is basically an unsecured loan to a corporation. A type of debt instrument that is not secured by physical asset. Debentures are backed only by the general creditworthiness and reputation of the issuer.

i)Convertible Debentures: Any type of debenture that can be converted into some other security or it can be converted into stock..

ii)Non-Convertibility Debentures(NCB): Non Convertible Debentures are those that cannot be converted into equity shares of the issuing company, as opposed to Convertible debentures. Non-convertible debentures normally earn a higher interest rate than convertible debentures do.

Is This Answer Correct ?    0 Yes 0 No

Post New Answer

More Banking Finance Interview Questions

What is the educational qualification required for marketing officer and asst. Manager posts?

0 Answers  


What do you mean by return on capital employed? What does it indicate?

0 Answers  


what is the working of GDR?

2 Answers  


What does ICFAI stands for?

0 Answers   SEBI,


How your skills can be useful to LIC?

0 Answers   LIC,






What is return on shareholder s funds? What does it show?

0 Answers  


How your goal would coincide with company's goal?

0 Answers  


What is Bitcoin?

0 Answers   SEBI,


What is a hedge fund?

1 Answers  


Where is the market (for bonds/equities/FX) going?

0 Answers  


What is GAAR?

0 Answers   SEBI,


State some points of Union Budget 2017?

0 Answers   IBPS,


Categories
  • Business Administration Interview Questions Business Administration (517)
  • Marketing Sales Interview Questions Marketing Sales (1279)
  • Banking Finance Interview Questions Banking Finance (3208)
  • Human Resources Interview Questions Human Resources (745)
  • Personnel Management Interview Questions Personnel Management (68)
  • Hotel Management Interview Questions Hotel Management (29)
  • Industrial Management Interview Questions Industrial Management (113)
  • Infrastructure Management Interview Questions Infrastructure Management (14)
  • IT Management Interview Questions IT Management (97)
  • Supply Chain Management Interview Questions Supply Chain Management (16)
  • Operations Management Interview Questions Operations Management (39)
  • Funding Interview Questions Funding (79)
  • Insurance Interview Questions Insurance (494)
  • Waste Management Interview Questions Waste Management (1)
  • Labor Management Interview Questions Labor Management (48)
  • Non Technical Interview Questions Non Technical (73)
  • Business Management AllOther Interview Questions Business Management AllOther (546)