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What is the correct full form of OFCD context of debentures?
- a)Option for converting debentures
- b)Optionally for convertible debentures
- c)Option fully converting debentures
- d)Optionally fully convertible debentures
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
What is the correct full form of OFCD context of debentures?a) Option...
- Debentures are the debt instruments which may be issued by a listed or non-listed firm to raise funds in a security market.
- They are of many types, viz., Redeemable, Non-redeemable, Partially Convertible and Fully Convertible.
- In case of 'fully convertible debentures,' an option (that is why the name OFCDs, i.e., Optionally Fully Convertible Debentures) is given to the debenture-holders.
- They may wish to convert their OFCDs into shares (after the expiry of the period fixed by the debenture issuing firm--known as "lock-in' period).
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Most Upvoted Answer
What is the correct full form of OFCD context of debentures?a) Option...
OFCD Full Form Explained:
Optionally Fully Convertible Debentures (OFCD)
- Option: Refers to the choice given to debenture holders to convert their debentures into equity shares.
- Fully Convertible: Indicates that the entire value of the debenture can be converted into equity shares.
- Debentures: Are debt instruments used by companies to raise funds from the market.
Explanation:
Optionally Fully Convertible Debentures (OFCD) are a type of debentures that provide debenture holders with the option to convert their debentures into equity shares at a later date. This gives investors the flexibility to benefit from potential appreciation in the company's share price. Additionally, the term "Fully Convertible" means that the entire value of the debenture can be converted into equity shares, making it a popular choice for investors looking to participate in the company's growth.
Overall, OFCDs offer a unique investment opportunity for individuals seeking both fixed income through debentures and potential capital gains through equity shares.
Optionally Fully Convertible Debentures (OFCD)
- Option: Refers to the choice given to debenture holders to convert their debentures into equity shares.
- Fully Convertible: Indicates that the entire value of the debenture can be converted into equity shares.
- Debentures: Are debt instruments used by companies to raise funds from the market.
Explanation:
Optionally Fully Convertible Debentures (OFCD) are a type of debentures that provide debenture holders with the option to convert their debentures into equity shares at a later date. This gives investors the flexibility to benefit from potential appreciation in the company's share price. Additionally, the term "Fully Convertible" means that the entire value of the debenture can be converted into equity shares, making it a popular choice for investors looking to participate in the company's growth.
Overall, OFCDs offer a unique investment opportunity for individuals seeking both fixed income through debentures and potential capital gains through equity shares.
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What is the correct full form of OFCD context of debentures?a) Option for converting debenturesb) Optionally for convertible debenturesc) Option fully converting debenturesd) Optionally fully convertible debenturesCorrect answer is option 'D'. Can you explain this answer?
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What is the correct full form of OFCD context of debentures?a) Option for converting debenturesb) Optionally for convertible debenturesc) Option fully converting debenturesd) Optionally fully convertible debenturesCorrect answer is option 'D'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about What is the correct full form of OFCD context of debentures?a) Option for converting debenturesb) Optionally for convertible debenturesc) Option fully converting debenturesd) Optionally fully convertible debenturesCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the correct full form of OFCD context of debentures?a) Option for converting debenturesb) Optionally for convertible debenturesc) Option fully converting debenturesd) Optionally fully convertible debenturesCorrect answer is option 'D'. Can you explain this answer?.
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