Interested to Buy Any Domain ? << Click Here >> for more details...
Differences between Debentures and preference share capital?
- 3 Answers
- 16026 Views
- I also Faced
- E-Mail Answers
Answer Posted / neerajkumar.che
hello,
The difference between debentures and preference capital is
that debentures are the debt instrument issued by the
company , which could be secured or unsecured.Debentures
also have call option,convertiblity option.Debentures
holder do not hold the voting right.Debentures could be
converted into common shares.Debentures hold the coupon
payment.At the time of liquidation of the company they are
above the preference shareholders in getting back their
money.They do not have any liblity.
Preference share is long term equity capital of the
company.This is liablity owed by business to
shareholder.Preference share holders are entitled to get
the share dividend before common share holders.They too, do
not enjoy the voting right in annula general meeting of the
company,but voting right can be grated to them in condition
where company deferred the payment of dividend for
consecutive 3 years.They have limited liblity toward the
amount of their investment in the company.
| Is This Answer Correct ? | 27 Yes | 4 No |
Post New Answer View All Answers
What do you understand by CSR?
What is the source of government income?
Explain different types of bank loans?
What is Pradhan Mantri Jan Dhan Yojana?
What Is The Difference Between Reserve And Allowance?
What is CAG?
When have you worked in a bad team? Which steps did you take to make it better?
What Is Credit Management System?
How Many Are the Types of Public Limited Company?
What are the limitations of ratio analysis?
What is a term loan agreement? What are its various clauses?
What does a delivery channel mean?
What idea do you frame of insurance sector in India?
HI ,MY QUALIFICATION B.A. + PGDCA AND TRAINED ON JAVA . NOW I WANT TO KNOW TO GET JOB SOON WHICH COURSE I HAVE TO LEARN ?
what should be the recommendation of taxation in private company?
