Question

Q1. Mention two factors the differentiate share and debenture.​

Answer 1

Answer:

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. The person who holds the ownership of the Debentures is called as Debenture holders.

Answer 2

There are some significant differences between a share in the debenture.

Explanation:

1. Shares and debentures or forms of borrowings using which a business by is money from the potential investors.
2. Shares provide participative and ownership rights to the shareholders while these rights are not available to the debenture holders.
3. Shareholders are the owners of the business while the debenture holders are the creditors of the business.
4. Shares do not have a fixed rate of return and have a risk factor while debentures generally have a fixed rate of return and are more secure.