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Redeemable debt is repayable at some future date, irredeemable debt is never repayable.
Dear Sir…
I was confused above statement.
Any debts may not be never repayable.
Due to specified repayment date or not?
Plz … explain me
Hoping …If an investor buys irredeemable debt, then they are lending money to the company and in return will get interest each year. The company will never repay the money (unless, obviously, the company closes down). If the investor needs the money back then they sell their investment to someone else (on the stock exchange) and the someone else then gets interest each year.
(Just as with shares – if you buy shares in a company you are effectively lending money to the company but they never repay it to you. Instead you get a dividend each year. If you need the money back you sell your share to someone else (on the stock exchange) and they get the dividends instead of you.)
Thanks Sir for ur clearly explaination 🙂
Share’s example is best example for me.
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