If a debenture is cancelled by a company purchased by some investor or itself by the company then will the company be able to issues the same debenture to the other investor?
Dear Student,
On purchase of its own debentures from the market, a company has an option of either cancelling those purchased debentures or to earn profit from such debentures by reselling them in the market.
Now, if a company after purchasing its own debentures from the market decides to cancel them, then the debentures cannot be issued to any other investor. This is because the account of such debentures is closed permanently.
On purchase of its own debentures from the market, a company has an option of either cancelling those purchased debentures or to earn profit from such debentures by reselling them in the market.
Now, if a company after purchasing its own debentures from the market decides to cancel them, then the debentures cannot be issued to any other investor. This is because the account of such debentures is closed permanently.