Investing in Debêntures

in #investing6 years ago

Hello friends,

Learning more about investments to try to organize my financial life, I came across a little diffused way of investing. I'm talking about Debentures, have you stopped?

What is debentures?

Debentures is a debt bond in your investment and a loan to the company that is not a financial institution or a real estate lending institution.

Thus, the investor is a creditor of the company in question and receives the fixed or variable interest at the end of the agreed period.

These titles can be of 2 types:

Convertible: may be converted into shares of the issuing company at the end of the period or within the established period.

Simple: can not be converted into shares

Customers are more flexible than an LCA or LCI, for example. The characteristics of the security are defined in the issuance, but may be periodically renegotiated between debenture and company if they deem it necessary.