Resources  ❯  Accounting Terms

High-Premium Convertible Debenture

[high-PREE-mee-um kuhn-VUR-tuh-bul dih-BEN-chur]

What is the definition of High-Premium Convertible Debenture?
A type of bond that features a long-term maturity, offers a high premium for conversion into common stock, and provides a competitive interest rate.
Using High-Premium Convertible Debenture in an Example

A company issues a high-premium convertible debenture that allows investors to convert their bonds into shares of the company's common stock at a premium price, higher than the current market value. This bond also pays an attractive interest rate, making it appealing for both conservative investors seeking regular income and those interested in potential capital gains through conversion.

Using High-Premium Convertible Debenture in a sentence

The financial advisor recommended adding high-premium convertible debentures to the portfolio to benefit from both the stable income of bonds and the growth potential of stocks.

Related Terms

Half-Life

In the context of mortgage-backed securities, half-life refers to the point in time at which half of the principal amount of the security has been repaid.
Learn More

Head of Household

A tax filing status for individuals who are unmarried and provide more than half of the financial support for their household, which may include dependents or other qualifying relatives. This status offers more favorable tax rates and higher deductions compared to single filers.
Learn More

Hedge

A transaction or series of transactions undertaken to reduce the risk of an investment, often by taking an offsetting position in a related security.
Learn More

Held-to-Maturity Security

A debt security that a company has the intent and ability to hold until its maturity date, at which point it is expected to be paid in full.
Learn More

High-Low Method

A technique used in cost accounting to separate fixed and variable costs associated with a business activity by analyzing the highest and lowest points of activity and their corresponding costs.
Learn More

Historical Cost

The original cost of an asset to an entity at the time of its acquisition, recorded on the financial statements.
Learn More

Holding Period

The duration between the acquisition and the sale or disposition of an asset by a taxpayer.
Learn More

Hope Scholarship Credit

A tax credit available for the first two years of post-secondary education, providing a maximum credit of $1,500 per student per year, contingent upon meeting specific eligibility requirements.
Learn More

Horizontal Analysis

A financial analysis technique that compares line items in financial statements over a series of periods, calculating both the dollar amount and percentage changes from one period to the next.
Learn More

1031 Question? Ask ARTE

Deferred's AI 1031 Research Assistant is trained on 8,000+ pages of US tax law and outperforms human CPAs by 22%+

CHAT NOW
Deferred.com Resources

Recent Posts

Can you 1031 exchange a vacation home?
Because the 1031 Exchange rules permit owners to use the property part of the year, exchangers can have a cash-flowing, appreciating investment that also serves as their semi-permanent vacation property.
Aaron LaRue
1031 Improvement Exchange
Learn how to leverage an improvement exchange (using exchange funds for new constructions, additions, or upgrades) to increase the value of your real estate investment portfolio.
Aaron LaRue
1031 Exchange Options
Take advantage of our profit-generating ideas to use the 1031 Exchange to make your property portfolio more profitable.
Aaron LaRue
What are the disadvantages of a 1031 exchange?
The 1031 Exchange is a great way for businesses and investors to take advantage of the additional value of their real estate and put it into their next purchase, but are there tradeoffs to consider?
Aaron LaRue
What Happens to Depreciation in a 1031 Exchange?
Depreciation recapture is a process then enables the IRS to collect taxes on the financial gain you have made from the sale of an asset. Exactly what depreciation recapture rate will apply will depend on your individual circumstances.
Aaron LaRue
Form 6252: Report an Installment Sale
Use this form to report income from an installment sale on the installment method.
Aaron LaRue
About DeferredReviewsPricingSchedule Intro Call
Partner with DeferredCareersEngineering Blog
ResourcesARTE: AI Tax AssistantDeferred Gains Calculator1031 Exchange Articles
Accounting Terms1031 Rules per StateFind a 1031 Intermediary
© 2024 Deferred Inc.
Terms PrivacyCommunicationsContact