what is the difference between shares & debentures
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Answer / ayyalusamy
Shares are issued by public limited companies for mobilizing
their capital.for which companies are paying dividend in
annualy or 6 months once.
Debentures are issued by public limited companies for
mobilizing additional capital and for which companies are
paying certain percentage of interest in annually.
Difference between shares & Debenture is :
Share holders eligible for voting ,bonus shares,Right issue
of shares and they are liable upto their shareholding to
companies liabilities in case of liquidation of the company.
where as debenture holders are investors like bank
depositors and they are eligible for interest and preference
in getting back their investments in case of insolvency of
the company.
| Is This Answer Correct ? | 14 Yes | 0 No |
Answer / hamidulla
shares is issued by a company to collect the funds from
people.If the share fund is not enough to the company they
issue the debentures.In shares the company will give some
percentange of the benefit to his shareholders,for the
depentures the company has to pay a certain percentage of
amount to his share holder.
| Is This Answer Correct ? | 7 Yes | 3 No |
Answer / sangram kumar nanda
share and debenture both are issued for collecting funds.but the difference is (1)when a person purchase shares he/she becomes the part owner of the company to the extent he purchased but but debenture holder are regarded as the long term creditor of the company.
| Is This Answer Correct ? | 0 Yes | 0 No |
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