What Is The Comparison Shares And Debentures?

1.shares are said to be source the own capital and debentures are said to be source of loan capital.

2.Shareholders are the owner of the company and debentureholder are the lender for a company.

3.Return for the shareholders are nt fixed as the disbursement on dividend depends on the profitability of the organisation and on the other hand the dentureholders get fixed amount interest at regular interval.

4. Debenture attracts low return and low risk because debentureholder gets preference for repayment at the time of winding up of companies and Equityholders are the last party to be paid off as they are the owners of the company so equity attracts high risk and high return.

Hope this will help u a bit.