Give the difference between shares and debentures.

Solution

Following are the main differences between shares and debentures:
1. Ownership :The share of a company provides ownership to the shareholders. Debenture-holders are creditors of a company who provide loan to the company.
2. Identity :Person holding share is known as shareholder. person holding debenture is known as debenture-holder.
3.Certainty Of Return :No certainty of return in case of loss for the shareholder. Debenture-holder receives the interest even if there is no profit.
4. Convertibility ;Shares can not be converted into debentures. Debentures can be converted into shares.
5. Control :Shareholders have the right to participate and vote in company's meeting. Debenture holders do not possess any voting right and can not participate in meeting.

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Give the difference between shares and debentures.

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