Question

SHARES (HOLDER) DEBENTURES (HOLDER)

Answer 1

N	SHARES (HOLDER)	DEBENTURES (HOLDER)
1	Meaning A Company owned capital that is spilled into a large number of equal parts each such part is called shares.	A debenture is an acknowledgment of debt. It is a source of borrowed capital.
2	Return on investment Monetary return on shares is called the dividend and it is paid at fluctuating rate.	Monetary return on debentures is called interest and it is paid at a fixed rate.
3	Voting rights The Shareholders have voting rights through which they can participate in the management.	The Debenture holders do not enjoy normal voting rights, except on those matters which affect their interest
4	Status of holders The shareholders are the owners of the company.	Debenture holders are the Creditors of the company.
5	Redemption Equity shares are not redeemed throughout 7 the life of the company.	Redeemable debentures are paid back after their maturity.
6	Priority claims Shareholders do not have any priority while receiving a return on investment or return of capital.	Debenture holders have prior claims for repayment of capital and for receiving interest on their investments.
7	Market Value Market values of the shares keep changing as per the financial condition of the company.	The market value of the debentures remains constant.
8	Security offered No security is offered for investing money in share capital.	The company can offer any asset as a security to debenture holders.