Shares vs Debentures — Difference (with Table)
Shares vs Debentures compared side by side — a 5-row comparison table and 4 key points. Class 10 Economics, free and no sign-up.
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TL;DR: Shares vs Debentures compared side by side — a 5-row comparison table and 4 key points. Class 10 Economics, free and no sign-up.
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The main difference between Shares and Debentures: Shares represent ownership while debentures are debt instruments. Both are ways companies raise capital.
Shares vs Debentures — Comparison Table
| Basis | Shares | Debentures |
|---|---|---|
| Nature | Ownership stake in company | Loan certificate |
| Return | Dividends if profitable | Fixed interest rate |
| Risk | High risk, value fluctuates | Lower risk, fixed returns |
| Voting right | Shareholders have voting rights | Debenture holders have no voting rights |
| Priority in payment | Last priority if company fails | First priority among creditors |
Key Points
- Shares offer ownership but high risk
- Debentures offer safety but fixed returns
- Share prices fluctuate with market
- Debenture interest is guaranteed