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A convertible debenture is a type of long-term debt issued by a company that can be converted into shares of equity stock after a specified period. Convertible debentures are usually unsecured bonds or loans, often with no underlying collateral backing up the debt.
Convertible debentures are a type of debentures that can be converted into equity shares of the company. Non-convertible debentures are defined as the type of debentures that cannot be converted into equity shares of the company.
The debit side of the journal entries for the issuance of convertible debt will include the compensation account. Usually, companies receive cash through the bank for these bonds. Therefore, it is most likely that this account will be the company's cash at the bank account.
A convertible subordinate note is a short-term debt security issued by a company that can be exchanged for its common stock at the discretion of the bondholder. It is a short-term convertible bond, but which ranks below other, more senior loans (it is junior to other debt).
A convertible subordinated debt (note) is a short-term debt security that an individual can exchange for common stock at the bondholder's discretion. A subordinated debt is also called a subordinated loan or junior security. It carries more risk than unsubordinated debt.
The debit side of the journal entries for the issuance of convertible debt will include the compensation account. Usually, companies receive cash through the bank for these bonds. Therefore, it is most likely that this account will be the company's cash at the bank account.
Companies issue convertible bonds to lower the coupon rate on debt and to delay dilution. A bond's conversion ratio determines how many shares an investor will get for it. Companies can force conversion of the bonds if the stock price is higher than if the bond were to be redeemed.
Subordinated debt is any type of loan that's paid after all other corporate debts and loans are repaid, in the case of borrower default. Borrowers of subordinated debt are usually larger corporations or other business entities.
Subordinated notes. noun plural FINANCE. notes (= loans for short periods) where the company or person lending the money will be paid back after others, or will receive a smaller amount than they are owed, if the person borrowing money gets into financial difficulty.
Diligence and Financing Documents certificate of incorporation and by-laws; capitalization, which review typically consists of inspecting the resolutions and agreements evidencing equity, debt, or stock option issuances, such as a founder's stock purchase agreement;