1.

Differentiate between equity share and debenture on the basis of risk involved?

Answer»

tus:A debenture-holder is a CREDITOR of the company, but a shareholder is a part-owner of the company. Thus, a debenture is a ‘creditor ship security’ as against a share which is an ‘ownership security’.(B) Return on investment:A debenture-holder gets the interest payment regardless of the amount of profit or loss at the stipulated time but the shareholder does not receive any dividend unless the company MAKES a profit. Even when the company has made a profit, the payment of dividend normally depends upon the DISCRETION of the directorsI hope this will help YOUIF not then comment me



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