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Categories >> Accounting >> Accounting AllOther
 
 


 

 
 Audit interview questions  Audit Interview Questions (427)
 CompanyAffairs CS interview questions  CompanyAffairs CS Interview Questions (158)
 Taxation interview questions  Taxation Interview Questions (1898)
 Accounting General interview questions  Accounting General Interview Questions (2808)
 Accounting AllOther interview questions  Accounting AllOther Interview Questions (4359)
Question
WHAT IS MEAN BY SHARE & DEBENTURE?  WHAT IS THE DIFFERENCE 
BETWEEN THEM?
 Question Submitted By :: Accounting-AllOther
I also faced this Question!!     Answer Posted By  
 
Answer
# 1
share:A unit of ownership interest in a corporation or
financial asset. While owning shares in a business does not
mean that the shareholder has direct control over the
business's day-to-day operations, being a shareholder does
entitle the possessor to an equal distribution in any
profits, if any are declared in the form of dividends. The
two main types of shares are common shares and preferred
shares.
Debenture:A certificate or voucher acknowledging a debt.
An unsecured bond issued by a civil or governmental
corporation or agency and backed only by the credit
standing of the issuer.

Difference:A debenture is an unsecured loan you offer to a
company. The company does not give any collateral for the
debenture, but pays a higher rate of interest to its
creditors. In case of bankruptcy or financial difficulties,
the debenture holders are paid later than bondholders.
Debentures are different from stocks and bonds, although
all three are types of investment. Below are descriptions
of the different types of investment options for small
investors and entrepreneurs.

Debentures and Shares
When you buy shares, you become one of the owners of the
company. Your fortunes rise and fall with that of the
company. If the stocks of the company soar in value, your
investment pays off high dividends, but if the shares
decrease in value, the investments are low paying. The
higher the risk you take, the higher the rewards you get.

Debentures are more secure than shares, in the sense that
you are guaranteed payments with high interest rates. The
company pays you interest on the money you lend it until
the maturity period, after which, whatever you invested in
the company is paid back to you. The interest is the profit
you make from debentures. While shares are for those who
like to take risks for the sake of high returns, debentures
are for people who want a safe and secure income.
 
Is This Answer Correct ?    374 Yes 35 No
Prasanna
 
Answer
# 2
share are the part of the authorised share of the company,
It is capital of the company,

Debenture are the acknowledgement of the taken loan from
the outsiders of the company. It is liability of the
company to repay the money of the debenture holders within
the given certain period with the interest.
 
Is This Answer Correct ?    212 Yes 29 No
Satya
 
 
 
Answer
# 3
share: it means it s part of the capital to contribute the
share holders for getting the divident here divident means
it s the part of the profit given by the companys for the
cause of there amounts spent for that company

debenture: it means the company not get the all the
capitail through shares accroding to the memorandam of
association there is certin limit for getting the shares
beyond this the company issues a debenture certificates to
the debenture holders its like a promisary note
diffrent:
share holders get divident
debenture holders get interest
 
Is This Answer Correct ?    67 Yes 22 No
Nurulla
 
Answer
# 4
share shows the ownership of the copany. which is part of
the capital of the comapny.

debenture is the libility of the company which is pay by
the company on maturity period.

diffrence is - share shows the ownership and debenture
shows liability
 
Is This Answer Correct ?    50 Yes 14 No
Saurabh Signh Ruhela
 
Answer
# 5
share:
If some one want to make one company means he will
need more money for that first he will invest money and the
balance will be sold in the market.The man one having money
he will invest the money for that company as a share. If the
company get gain means the ratio of how much invested that
will give return back.That is a share.
 
Is This Answer Correct ?    23 Yes 9 No
M.jegan
 
Answer
# 6
Share : A share is a share in share of the sharecapital of
the company.


Debenture : Debenture is an acknowkedgement of debts. it
may be secured or unsecured.

Difference:A debenture is an unsecured loan you offer to a
company. The company does not give any collateral for the
debenture, but pays a higher rate of interest to its
creditors. In case of company Woundup or any financial
difficulties,
the debenture holders are paid after shareholders.
 
Is This Answer Correct ?    37 Yes 25 No
Sridharan.v
 
Answer
# 7
Share : the full or proper portion or part allotted or
belonging to or contributed or owed by an individual or
group

Debenture : Lone taken from the Public by a company is
known as debenture.
 
Is This Answer Correct ?    57 Yes 48 No
Iftekar
 
Answer
# 8
the equal unit of captial are called share.there are two
type of share equity share and preference share. equity
shareholer are the owner of company. if company come
bankrupt preference shareholder get his payment first than
equty shareholder
where debenture is equal part of loan .it mean if company
issue debenture it mean they want money from the outsider
and it will pay with some interst to them after certain
period
shareholder are owner of company where dentureholder
is loanholder.share is a part of capital where debenture is
a part of loan
 
Is This Answer Correct ?    23 Yes 15 No
Neha Srivastava
 
Answer
# 9
Debenture. Convertible and non-convertibles. Debentures are
issued for a fixed sum or multiples thereof. Convertible
bonds can be converted into tradeavke "shares" subject to
the conditions laid down by the promoter of such bonds. Non-
convertible bonds have to be cashed after the expiry of the
tenure.

Shares are issued by the companies for a particular price.
T hese are tradeable on day-to-day basis in the share
market.
Although once banned, now-a-days preferential shares are
being issued by many companies to particular persons or a
group to raise money. The face falue of the shares may be
different from the one being charged in the Initial
Promotional Offers (IPO).
 
Is This Answer Correct ?    18 Yes 10 No
Arvind Kulkarni
 
Answer
# 10
share is the part of the profit to distrubute to thier
share holders for the cause of investing thier amounts in
thier companys or organations.share is distrubute in
dividents
debenture means its distubution of interest to thier
crediters for giving thier credit
 
Is This Answer Correct ?    32 Yes 27 No
Nurulla
 

 
 
 
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