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what is the difference between debenture and preference share

Answer Posted / 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.

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