Differences Between Shares and Debentures
- Shareholders are effectively owners; debenture-holders are creditors.
- Shareholders may vote at AGMs (Annual General Meetings) and be elected as directors; debenture-holders may not vote at AGMs or be elected as directors.
- Shareholders receive profit in the form of dividends; debenture-holders receive a fixed rate of interest.
- If there is no profit, the shareholder does not receive a dividend; interest is paid to debenture-holders regardless of whether or not a profit has been made.
- In case of dissolution of firms debenture holders are paid first as compared to shareholder.
Read more about this topic: Financial Capital
Famous quotes containing the words differences between, differences and/or shares:
“The extent to which a parent is able to see a child’s world through that child’s eyes depends very much on the parent’s ability to appreciate the differences between herself and her child and to respect those differences. Your own children need you to accept them for who they are, not who you would like them to be.”
—Lawrence Balter (20th century)
“I may be able to spot arrowheads on the desert but a refrigerator is a jungle in which I am easily lost. My wife, however, will unerringly point out that the cheese or the leftover roast is hiding right in front of my eyes. Hundreds of such experiences convince me that men and women often inhabit quite different visual worlds. These are differences which cannot be attributed to variations in visual acuity. Man and women simply have learned to use their eyes in very different ways.”
—Edward T. Hall (b. 1914)
“It is the sun that shares our works.
The moon shares nothing. It is a sea.”
—Wallace Stevens (1879–1955)