Whats The Difference Between A Share And A Debenture?
Answer:
Share is equity taking part in the Company. When you buy a share, you become a shareholder of the company.
When you buy a debenture you become a creditor to the company. Deposits are like any bank deposit.
Share is equity participation in the company. When you buy a share you become the shareholder of that company. Share is issued by the companies for a particular price.
A debenture is a long-term debt instrument used by government and large companies to obtain funds. Debentures are issued for a fixed sum or multiples there of.
A debenture is a fixed interest loan, issued by a company and, ( in Britain) secured by it's assets.
Debentures can also be traded as investment vehicles.
On the other hand, shares as they are call in the U.K. and stocks, as they are called in the U.S., are securities representing a portion of the nominal assets of a company.
The profit on a share or stock, is realised by selling some or all of the shares owned.
A share premium, is the money realised by selling shares at above their par or nominal value. In America this can be referred to as paid surrounded by surplus.
Debenture are the fixed interest loan. They are used to attain funds from the Govt and also from other company.
If we purchase the shares we become the shareholders of the company.
Share is issued by the company for a perticular tariff.
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