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State any two differences between Shares and Debentures. - Home Science (Theory)

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प्रश्न

State any two differences between Shares and Debentures.

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उत्तर

Sr. No Shares Debentures
1 Shares symbolize ownership in a company and entitle the shareholder to a share of the ownership rights within the company. A loan made by the holder of a debenture to the company is represented by a debenture.
2 Dividends and capital gains are the forms of returns that shareholders receive; these are contingent upon the company's performance. Fixed-interest payments are the form of returns for holders of debentures; these payments are made irrespective of the performance of the company.
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