Difference between share and debenture tutorialspoint
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Share is the capital of the company, but Debenture is the debt of the company. The shares represent ownership of the shareholders in the company. On the other hand, debentures represent indebtedness of the company. The income earned on shares is the dividend, but the income earned on debentures is interest.
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Share is the capital of the company, but Debenture is the debt of the company. The shares represent ownership of the shareholders Shares are the company-owned capital. Debentures are the borrowed capital of the company. The person who holds the ownership of the shares is called as Shareholders. ... Interest can be paid to the debenture holders, regardless of if the company has earned profits.
. ... Unlike the interest on debentures which has to be paid by the company to debenture holders, no matter company has earned profit or not.
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