| 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 |