Sarthaks APP
0 votes
502 views
in Accounts by (64.1k points)
How are debentures different from shares? Give two points.

1 Answer

0 votes
by (106k points)
selected by
 
Best answer

Nature: A share is a part of the capital of the company and a debenture is a part of loan of the company. 

Dividend or Interest :Dividend on shares is paid only when there are profits in the company on the other hand debenture interest has to be paid, it the company does not have profit or even suffer a loss. 

Ownership Equity share holders are the owners of the company on the other hand debenture holders are the creditors of the company.

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...