1.

Distinguish between Shares and Debentures.

Answer»
 Shares Debentures
 Shareholders are the owners of the company Debenture holders are the creditors of the company
 Shareholders get dividends Debenture holders get interest
 Shareholders have voting right Debenture holders have no voting right
 No security is required to issue shares Generally debentures are secured
 Shares are not redeemable Debentures are redeemable
 Share capital is payable after paying all outside liabilities Debenture holders have the priority of repayment over shareholders


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