N
|
SHARES (HOLDER)
|
DEBENTURES (HOLDER)
|
1
2
3
4
5
6
7
8
|
Meaning
A Companies owned capital which is spilt into large number of equal parts each such part is called as shares.
Return on investment
Monetary return on shares is called as dividend and it is paid at fluctuating rate.
Voting rights
The Shareholders have voting rights through which they can participate in the management.
Status of holders
The shareholders are the owners of the company.
Redemption
Equity shares are not redeemed throughout 7 the life of the company.
Priority claims
Shareholders do not have any priority while receiving return on investment or return of capital.
Market Value
Market values of the shares keep changing as per the financial condition of the company.
Security offered
No security is offered for investing money in share capital.
|
Debenture is an acknowledgement of debt. It is a source of borrowed capital.
Monetary return on debentures is called as interest and it is paid at a fixed rate.
The Debenture holders do not enjoy normal voting rights, except on those matters which affect their interest
Debenture holders are the Creditors of the company.
Redeemable debentures are paid back after its maturity.
Debenture holders have prior claims for repayment of capital and for receiving interest on their investments.
Market value of the debentures remains constant.
Company can offer any asset as a security to debenture holders.
|
SHARES (HOLDER) DEBENTURES (HOLDER)
