What is meant by Fully Convertible Debentures and Partly Convertible Debentures?

SOLUTION

When only a part of the amount of debenture is convertible into shares or other securities, such debentures are called ‘Partly Convertible Debentures’. When the full amount of debenture is convertible into shares or other securities, such debentures are called ‘Fully Convertible Debentures’.



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