Financial Markets

Debentures are long-term debt instruments that an organisation can issue to investors. There are two main types of debentures, convertible and nonconvertible. First, let’s define Non-Convertible debentures and see how they differ from Convertible debentures. For the purpose of raising capital, businesses would sometimes issue debentures to investors in the form of long-term loans. They […]

Payouts made to stockholders by publicly traded firms. The company draws funding from its bottom line. Typically, the company provides these bonuses from the remaining profit after meeting necessary expenses, and they can take the form of cash, currency equivalents, shares, etc. The company’s board of directors sets the dividend rate and must also gain

When purchasing a bond, there is usually a specified maturity date. Upon reaching that date, you will receive your principal in full, with no additional interest payment. However, bonds that are permanent do not mature. What is a perpetual bond? How do they work? What are some examples? All of these questions and more will

People frequently misunderstand the nature of debentures. Here, we’ll compare and contrast secured debentures with their unsecured counterparts. Few debentures are interest-free, although they do exist. If you do come across the term, it will most likely refer to an unsecured loan. “Naked debentures” is another term for loans in which the borrower’s property or

Bond prices and yields fluctuate every day like those of any other publicly traded instrument, which comes as a shock to many novice investors. I know what you’re thinking: how strange is that for a financial instrument with a set face value, interest rate, and maturity date? Traders can trade bonds before maturity at a