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Share Market Terms , Definition and Meaning - Alphabetical LISTING - A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, Y, Z
Debentures A long – term instrument of debt, called bond in the United States . A debenture holder is creditor to the company who loans funds for a period of 7 -10 years against a fixed rate of interest. After the stipulated loan period the debentures are redeemed, i.e., the loan is paid back, sometimes with a very small premium. Debentures are generally secured against the company’s assets. Convertible debentures can be either fully or partly converted into a certain number of shares, usually at a premium, after a stated period of time. Convertible debentures may carry a lower rate of interest than non-convertible debentures which are redeemed after the stated period. A very conservative investment; there is little risk but also little prospect of appreciation. In the absence of an exit mechanism, and a properly organized secondary market where they could be easily traded, they are virtually illiquid investments. See TRANSFER OF DEBENTURES.
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Share Market Terms , Definition and Meaning - Alphabetical LISTING - A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, Y, Z
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