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asked ago in Economics by (64.5k points)

What is the difference between Debentures and Equity? 

(a) Debentures are sealed bonds acknowledging that money has been borrowed; equity is a shareholder's share voting rights in proportion to his shareholding 

(b) An equity shareholder cannot withdraw his amount whereas debentures can be withdrawn by taking back the amount 

(c) Equity shareholding is more risky, compared to debentures which are bound to return good interest on the principal 

(d) Both debenture and equity holders have the right of voting irrespective of the proportion of holdings but debentures are of lower value than equity

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(a) Debentures are sealed bonds acknowledging that money has been borrowed; equity is a shareholder's share voting rights in proportion to his shareholding

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