How are debentures different from shares? Give two points. – InterviewSolution

1.

How are debentures different from shares? Give two points.

Answer»

Shares	Debentures
A person holding the shares is called shareholder.	A person having the debentures is called’ debenture holder
Shares are part of the capital of the company.	Debentures are part of the loan of the company.
Shares cannot be converted into debentures.	Debentures can be converted into shares.
Shareholders being real owners have voting rights.	Debenture holders being only creditors do not have voting rights.
Share may be fully or partly paid.	Debentures are always fully paid up.

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