Question

give four difference between shares and debentures ​

Answer 1

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• The holder of shares is known as a shareholder while the holder of debentures is known as debenture holder.
• 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.
• The income earned on shares is the dividend, but the income earned on debentures is interest.
• The payment of dividend can be made only out of.