Difference between debenture n preference shares?

CBSE, JEE, NEET, CUET
Question Bank, Mock Tests, Exam Papers
NCERT Solutions, Sample Papers, Notes, Videos
Posted by Aimyy Agrahari 6 years, 1 month ago
- 2 answers
Gaurav Seth 6 years, 1 month ago
<th>BASIS FOR COMPARISON</th>
<th>SHARES</th>
<th>DEBENTURES</th>
| Meaning | The shares are the owned funds of the company. | The debentures are the borrowed funds of the company. |
| What is it? | Shares represent the capital of the company. | Debentures represent the debt of the company. |
| Holder | The holder of shares is known as shareholder. | The holder of debentures is known as debenture holder. |
| Status of Holders | Owners | Creditors |
| Form of Return | Shareholders get the dividend. | Debenture holders get the interest. |
| Payment of return | Dividend can be paid to shareholders only out of profits. | Interest can be paid to debenture holders even if there is no profit. |
Related Questions
Posted by Mohd Aman Mansoori 1 year, 5 months ago
- 0 answers
Posted by Tanishk Kabra 1 year, 5 months ago
- 0 answers

myCBSEguide
Trusted by 1 Crore+ Students

Test Generator
Create papers online. It's FREE.

CUET Mock Tests
75,000+ questions to practice only on myCBSEguide app
myCBSEguide
Aimyy Agrahari 6 years, 1 month ago
0Thank You