Answer / parvati

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.

Answer / neeraj khosla

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.

Answer / balla veerabhadra rao

the company should pay amount first to the debenture holder
than preference share holder when company is in insolvency
stage

Answer / avinash kunder (mumbai)

Debentures are debt security issued by companies, having a
certain MATURITY and bearing a stated COUPON RATE.
Debentures may be unsecured or secured by ASSETS such as
land and building of the issuing company. Debenture holders
have a prior claim on the earnings (coupon) and ASSETS in
the event of liquidation, as compared to PREFERENCE and
equity shareholders.

preference shares represent partial ownership in a company,
although preferred stock shareholders do not enjoy any of
the voting rights of common stockholders.The main benefit
to owning preference shares are that the investor has a
greater claim on the company's assets than common
stockholders Preferred shareholders always receive their
dividends first and, in the event the company goes bankrupt.

Answer / mansi damania

Intrerest on Debenture carries Tax Benefit Whereas
Preference Divident does not caary Tax Benefit on it.

Answer / hem lata

Preference share is a hybrid form of equity shares &
debenture.
Debentuer is a borrowed capital,but preference is owned
capital.
Interest on debenture paid before tax payment & dividend on
prefrence share paid after payment of tax.
Debenture hloder doesnot have the right to vote, whereas in
special case prefrence shareholder have right to vote
Debentuer carry less risk & give regular certain income but
prefrence share is risky as compared to debenture & didn't
give certanity of income

Answer / boston

debenture is the most common form of loan capital in which
is made available by investors on a long term basis. it is
a document containing details of an interest bearing loan
made to a company.

Preference shares are shares dividned, it has especal
pirority incase of winding up company. these type of shares
are based on fixed time in the year. profits are shared to
Preference share holders before Equity share holders.

Answer / karthick kumar

the debentures can get the interest in all the
times(profit/loss)

but the preference shares can get interest based upon the types
like if the preference share is cumulative on means the
interest is added with next year interest(at that time of
loss only)like wise the preference share differ from debentures.

Answer / naresh

debentures are the debt security or it is long term loans to
the company and pay fixed interest for the debentures.
where as preference shares are is part of capital, and pay
devidend for them

interest on debentures are tax deductible where dividend on
preference capital is tax liable

Answer / himanshu

The company can raise funds in different ways. Some of the
ways are:
1)Company Bonds- kind of a loan taken from investors. Bonds
have a validity, after which company has to repay the whole
principle amount.Investors have nothing to do with company
decision making.
2)Debentures- Almost same as bonds, but they dont have any
validity. Investors get the interest on their investment
like in case of Bonds.
3)Preferred Shares- These are preferred over equity shares
in case of dividend distribution as well as during
liquidation of the company.
4)Equity Shares- common shares that the peple can buy from
stock market. They are the most risky investment and last
one to get dividends.

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