How are debentures different from shares? Give two points.

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Solution

Basis of Comparisons

Debentures

Shares

1. Meaning

Debentures are a part of loan, therefore, the debenture holders are the creditors of a company.

Shares form a part of capital, hence, share holders are the owner of a company.

2. Voting Rights

These do not carry any voting rights for their holders.

These carry voting rights for their holders.

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Basis of Comparisons	Debentures	Shares
1. Meaning	Debentures are a part of loan, therefore, the debenture holders are the creditors of a company.	Shares form a part of capital, hence, share holders are the owner of a company.
2. Voting Rights	These do not carry any voting rights for their holders.	These carry voting rights for their holders.