Please Help: ACCOUNTS
Posted Date : 04-Aug-2012 , 05:34:22 pm | Posted By avijit
WHAT IS THE DIFFERENCE BETWWEN DEBENTURE AND SHARE?
Category : Accounts | Answers : 1 | Comments : 1 | Hits : 168
Answers
Answer By: Rambabu Senkarasetti
Debenture is debt to company whereas share is part of ownership.
Comments
CA Prateek Negi
09-Aug-2012 , 09:46:55 pmA person having the debentures is called debenture holder whereas a person holding the shares is called shareholder. Debenture holder is a creditor of the company and cannot take part in the management of the company while a shareholder is the owner of the company. It is the basic distinction between a debenture and a share. Debenture holders will get interest on debentures and will be paid in all circumstances, whether there is profit or loss will not affect the payment of interest on debentures. Shareholder will get a portion of the profits called dividend which is dependent on the profits of the company.