Answer Posted / 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 |
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