Economy, asked by Lakshya2331, 10 months ago

Differences between debentures and shares

Answers

Answered by TRISHNADEVI
2

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 \text{ \underline{ \: Difference between debentures and shares are :-  \: }} \\  \\  \text{1. Debentures are the part of loan capital.} \\   \:  \:  \:  \:  \:  \:  \:  \:  \:  \: \text{Whereas, shares are the part of owned capital.} \\  \\  \text{2. There is not restriction on the issude of debentures} \\  \text{ at a discount.} \\ \:  \:  \:  \:  \:  \:  \:  \:  \:  \:  \:  \text{But, shares, exceot sweat equity shares cannot} \\  \text{ be issued at a discount u/s 53  of the Companies} \\  \text{ Act, 2013.} \\  \\  \text{3. Debentureholders are the creditors of the company.} \\  \text{They donot have voting right.}  \\ \:  \:  \:  \:  \:  \:  \:  \:  \:  \:  \:   \text{On the othet hand, shares are the source of } \\  \text{membership and voting  right in the General meeting  }\\  \text{of the company.} \\  \\  \text{4. Sometimes, debentures are issued on the mortgage } \\  \text{of some property. Hence, the debenture may be} \\  \text{ secured.} \\  \:  \:  \:  \:  \:  \:  \:  \:  \:  \:  \: \text{But, shares are the part of capital. So, these} \\   \text {donot \: have any security.} \\  \\  \text{5. Normally, debentures are repaid during the life } \\  \text{time of the company.} \\  \:  \:  \:  \:  \:  \:  \:  \:  \:   \text{ Whereas, shares continue during the} \\  \text{  complete life time of the company.}

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