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Sia ? 4 years, 6 months ago
| Equity Shares | Debentures | |
|
1. Status |
Shares are ownership securities. The holders of shares are the owners of a company. |
Debentures are creditorship securities. Debenture holders are creditors of a company. |
|
2. Return on Investment |
Dividend is paid on shares by the company. The rate of dividend is not fixed. |
Interest is paid on debentures at a fixed rate. |
|
3. Repayment |
Equity shares capital is not to be returned back except in the case of liquidation. |
The amount of debentures is paid back to debenture-holders after a fixed time. |
|
4. Right to Participate |
Shareholders have a right to participate in the affairs of the company. |
Debenture holders can’t participate in the affairs of the company. |
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5. Liquidation |
Equity shares get the refund only when all liabilities have been paid off. |
Debenture holders get payment in priority as compared to all the creditors. |
|
6. Security |
Shareholders being owners, have to bear maximum risk. |
Debentures are usually secured by a fixed or floating charge. |
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Dhanashri Kadam 7 years, 2 months ago
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Sonali Aggarwal 7 years, 2 months ago
In a partnership firm the resources are limited but the liabilities are unlimited.
It is difficult to withdraw the investment as the consent and coordination of all the partners is must.
There are more chances of conflicts among the partners.
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Dhanashri Kadam 7 years, 2 months ago
6Thank You