A convertible debenture can convert into equity stocks for the issuing business after a certain amount of time. It is a proposition that is attractive investors, while offering low interest for companies seeking to raise capital.
A non-convertible debenture does not convert into equity within the issuing business. Nonetheless, it usually provides an increased rate of interest compared to a debenture that is convertible rendering it a far more high priced kind of money for companies.
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