What are shares and debentures?

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A debenture is an unsecured loan you offer to a company. The company does not give any collateral for the debenture, but pays a higher rate of interest to its creditors. In case of bankruptcy or financial difficulties, the debenture holders are paid later than bondholders. Debentures are different from stocks and bonds, although all three are types of investment. Below are descriptions of the different types of investment options for small investors and entrepreneurs.

Debentures and Shares
When you buy shares, you become one of the owners of the company. Your fortunes rise and fall with that of the company. If the stocks of the company soar in value, your investment pays off high dividends, but if the shares decrease in value, the investments are low paying. The higher the risk you take, the higher the rewards you get.

Debentures are more secure than shares, in the sense that you are guaranteed payments with high interest rates. The company pays you interest on the money you lend it until the maturity period, after which, whatever you invested in the company is paid back to you. The interest is the profit you make from debentures. While shares are for those who like to take risks for the sake of high returns, debentures are for people who want a safe and secure income.
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Difference between shares and debentures?

Shares forms ownership of the company , where as Debentures are the debt for any company. Shares investments returns in form of share in profit (dividend on shares) whereas

What are the differences between share and debenture?

SHARES- 1.share holder is the real owner of the company.share holder have not fixed dividend rate.share holder have not maturity period.share are not redeemed.shares are more

What is a debenture?

Debentures function more or less like bonds. One can also term debentures as a variant of bonds. Debentures are issued by a company which offers to pay interest in lieu of the

What is the difference between debentures and shares?

debentures are a form of unsecured debt that is in the form of a bond. This type of debt is normally used by corporations for funding. A share is just a percentage of a compan

Difference between preference shares and debentures?

Preference shares are equity form of capital while debentures aredebt form of capital both type of capital has preference to be paidbefore the normal share capital holders in

Difference between debenture and equity share?

Share capital is funds raised by issuing shares in return for cash or other considerations. Debenture is any debt obligation backed strictly by the borrower's integrity, e.g.

Types of shares and debenture?

Capital refers to the amount invested in the company so that it can carry on its activities. In a company capital refers to "share capital". The capital clause in Memorandum o

Discount on issue of shares and debentures?

Issue of shares at discount A company may issue shares at a discount i.e at a value below its par value. The following conditions must be satisfied in connection with the is

Difference between debenture and preference shares?

A debenture is a kind of debt. If any organization issues a Debenture to raise funds, the investor becomes a creditor to the business.On the other hand, by purchasing preferen
In Investing and Financial Markets

How does debenture differ from ordinary shares?

\n. Debentures also known as loan notes lean more towards non current liabilities i.e. bank loans, than ordinary shares which is equity.\n. \n. The interest from debentures
In Investing and Financial Markets

Difference between debenture and preference share?

Preference share holders have the highest preference of gettingtheir investment bank when the company goes bankrupt. The companyhas fulfill its obligation by selling its asset
In Investing and Financial Markets

What is the difference between preference shares and debentures?

Debenture and Preference shares are often confused with each other,, Basically Preference share is an equity type instrument but debenture is a straight forward loan. Debent