what is the difference between debenture and preference share

Question Posted / praveen kumar

14 Answers
71727 Views
Indiabulls, Newland Agro Industries, I also Faced
E-Mail Answers

Answers were Sorted based on User's Feedback

what is the difference between debenture and preference share..

Answer / suresh kola

Debenture are the loans of a company bearing certain coupon rate which should be paid every year irrespective of profit or loss...
Where as
Preference shares even though they carry a rate they will be provided the same rate of dividend.
For example if a company is carrying a profit more than 20% for that year and the preference shares carry only 13% then they will be provided 13% earlier to equity shares...

Thank you

Is This Answer Correct ?

1 Yes

0 No

what is the difference between debenture and preference share..

Answer / srikar

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

Is This Answer Correct ?

45 Yes

45 No

what is the difference between debenture and preference share..

Answer / a.srinath reddy

One of the major difference between preference shareholders and debentures in terms of accounting is 'the interest is recognised even though entity paid or not (accrual basis ) but payment preference dividend is contingent liability.so we shall not account for the preference dividend unless we paid

Is This Answer Correct ?

0 Yes

0 No

what is the difference between debenture and preference share..

Answer / sivaguru g

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.

Is This Answer Correct ?

38 Yes

122 No