Hello, my name is Akhil Chandra. I belong to India. I teach in a well-known commerce institute. Here is some beneficial information about debentures. A convertible note or convertible debentures meaning is a type of debt financing structured as a debt instrument that has the option to convert to equity (capped at the lower of the original price paid or fair market price) at the investor's discretion during a predetermined time period. When an investor purchases a convertible note, it is initially treated as a long-term investment. However, when the conversion trigger event occurs, the value of the instrument will be reclassified from long-term to short-term capital gains for tax purposes if investors choose not to convert it.

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