Question

difference between shares and debentures​

Answer 1

Answer:

Difference Between Shares and Debentures. Shares and debentures both are ways to raise capital however debentures are borrowed capital whereas shares are a portion of the company's capital itself.

Explanation:

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Answer 2

Answer:

Explanation:Shares are small divisions of a company’s capital. When a company goes public for the first time and gets listed on the stock exchanges to raise capital from the market, investors buy a share or number of shares in the company.

Debentures are long term debt instruments that a company issues under its seal. One difference between share and debentures is that debentures become borrowed capital for the company. It is like a loan that a company has taken from the debenture holders which is supposed to pay back with interest in due time.