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Question
State any two differences between Shares and Debentures.
Distinguish Between
Solution
| 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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