samual
Active member
one of the main differences between the shares and debentures is
Ownership. The share of the company provides ownership to the shareholder ,debentures holders are creditors of a company who provides loan to the company.
Identity. person holding share is know as shareholder, while person holding debentures is know as bebentures holder.
Certainty of Return. No certain of return in case of loss for the shareholder while debentures holders receives the intrest even if there is no profit.
Convertibility. Share cannot be converted into debentures. But debentures can be converted into shares.
Control. Shareholder have the right to participate and vote in company's meeting. But debentures holders do not possess any voting right and cannot participate in meeting.
There can be mortgage debentures I.e asset of the company can be mortgage in favor of debentures holders. But there can be no mortgage shares. Asset of the company cannot be mortgage in favour of shareholder.
There is no restrictions on issue of debentures at a discount can be issue only after observing certain legal formalities
While second debentures. These debentures are redeemed after the redemption of first debentures.
Issue of debentures what do we know about that?
Like and comment,and follow me for more information.
Ownership. The share of the company provides ownership to the shareholder ,debentures holders are creditors of a company who provides loan to the company.
Identity. person holding share is know as shareholder, while person holding debentures is know as bebentures holder.
Certainty of Return. No certain of return in case of loss for the shareholder while debentures holders receives the intrest even if there is no profit.
Convertibility. Share cannot be converted into debentures. But debentures can be converted into shares.
Control. Shareholder have the right to participate and vote in company's meeting. But debentures holders do not possess any voting right and cannot participate in meeting.
There can be mortgage debentures I.e asset of the company can be mortgage in favor of debentures holders. But there can be no mortgage shares. Asset of the company cannot be mortgage in favour of shareholder.
There is no restrictions on issue of debentures at a discount can be issue only after observing certain legal formalities
While second debentures. These debentures are redeemed after the redemption of first debentures.
Issue of debentures what do we know about that?
Like and comment,and follow me for more information.