What is a Convertible Debenture?

Also called a Convertible Note/Convertible Debt, it is a type of long-term debt issued by a company that can be converted into a specified number of shares of stock in the issuing company or cash of equal value after a specified period. Hence, it is a hybrid security (with debt and equity-like features).

They are usually unsecured bonds or loans, often with no underlying collateral to back up the debt. 

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