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SHARES
(HOLDER)
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DEBENTURES
(HOLDER)
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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.
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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.
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SHARES (HOLDER) DEBENTURES (HOLDER)
