Preference share holders have the highest preference of 
getting their investment bank when the company goes 
bankrupt. The company has fulfill its obligation by selling 
its assets. Here the preference first comes to preference 
share holders and then debenture holders and then equity 
holders.

preference shares has minimum risk where as equity has more 
risk. Another difference is that equity shareholder have 
right to participate & vice versa

debenture are the promissory notefor raising loan capital 
whereas preference shares is considered as the hybrid 
security they can clain on assest of the company.

Debenture are long-term loans. They carry fixed INTEREST. 
Payment of interest is not under the control of directors 
of a company.Debenture holders are creditors of a company.

Preference Shares are part of capital of a company. They 
carry fixed DIVIDEND. Payment of dividend is under the 
control of directors of a company. Preference Shareholders 
are the owners of a company.