MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Business Studies

Functions of Financial Market

What is meant...

Question

What is meant by redemption of debentures by conversion?

Open in App

Solution

Debentures are usually redeemed in cash but sometimes privilege is given to the debenture holders" to exchange their debentures either shares or for new debentures of the company. The redemption of debenture by means of shares or new debentures is known as redemption by conversion and the debentures which carry such a right is called convertible debentures.

Suggest Corrections

thumbs-up

0

Similar questions

What is meant by 'Premium on Redemption of Debentures'?

Q. Objective type questions.
Answer in are sentence only.

What is meant by redemption of Debentures?

Q. Objective type questions.
Answer in are sentence only.

What is meant by ‘Premium on Redemption of debentures?

What is meant by ‘Redemption out of Capital’?

Q. State with reason whether the following transactions will increase, decrease or not change the 'Return on Investment' Ratio:
(i) Purchase of machinery worth ₹10,00,000 by issue of equity shares.
(ii) Charging depreciation of ₹25,000 on machinery.
(iii) Redemption of debentures by cheque ₹2,00,000.
(iv) Conversion of 9% Debentures of ₹1,00,000 into equity shares.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Functions of Financial Market

BUSINESS STUDIES

Watch in App

explore_more_icon

Explore more

Functions of Financial Market

Standard XII Business Studies

Join BYJU'S Learning Program

CrossIcon