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Question

what is the difference between share and debenture

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Solution

Shares are part of share capital of the company being issued by it. Whereas Debentures are part of the debt or loan capital raised by it. Shareholders are owners of the company whereas debenture holders are the creditors for the company. Also, Shareholder receives dividend on the shares only in case of profits, so the rate of dividend varies with the profits but debentures carries fixed rate of interest which have to be paid by company irrespective of company profits.


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