How debentures are different from shares? Give two points.

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Solution

Basis of Comparison Debentures Shares

1. Meaning The holders of debentures are regarded as creditors of the company as debentures are a part of loan. As shares are a part of capital therefore shareholders are owners of the company.

2. Voting Rights No voting rights for holders Holders have voting rights

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Basis of Comparison	Debentures	Shares
1. Meaning	The holders of debentures are regarded as creditors of the company as debentures are a part of loan.	As shares are a part of capital therefore shareholders are owners of the company.
2. Voting Rights	No voting rights for holders	Holders have voting rights