Integrato Digital

Tuesday, 27 October 2026

Question of the day: NISM Series XII

Chapter 2 · Securities: Types, Features and Concepts of Asset Allocation and InvestingMedium

After a convertible debenture is converted into shares, the investor:

  • AContinues to receive interest as well as dividends
  • BBecomes a shareholder and no longer has the rights of a lender
  • CCan demand repayment of the debenture's face value
  • DKeeps the security charge on the company's assets
Interest is paid until the conversion date. After conversion the holding is equity with all shareholder rights and no further rights as a lender.
The concept: Features of debt securities

Debt is raised through debentures, bonds, commercial paper, certificates of deposit and pass-through certificates. Each has a tenor and a coupon, quoted as a percentage per year of face value.

Did this one catch you out? Test a friend.

Make it a daily habit

Create a free account to keep a streak, get a new question every day and take full-length free mock tests.

Create free accountTake a free 20-question test

Earlier questions

Install Integrato Digital on your phone to open today's question in one tap.