Explain the difference between the convertible and non-convertible debenture?



Explain the difference between the convertible and non-convertible debenture?..

Answer / Shailendra Arya

Convertible debentures are debt securities that can be converted into shares of the issuing company at a later date, usually at the holder's discretion. Non-convertible debentures, on the other hand, do not have this conversion feature and are purely debt instruments. The main difference lies in the potential for equity upside with convertible debentures.

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