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Question
Short Answer Question
How are debentures different from shares? Give two points.
Short Note
Solution
|
Basis of Comparisons |
Debentures |
Shares |
|
1. Meaning |
Debentures are a part of loan, therefore, the debenture holders are the creditors of a company. |
Shares form a part of capital, hence, share holders are the owner of a company. |
|
2. Voting Rights |
These do not carry any voting rights for their holders. |
These carry voting rights for their holders. |
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Distinction Between Shares and Debentures
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