DIFFERENCE BETWEEN SHARES AND DEBENTURES

SHARES	DEBENTUREs
Shares are a part of the capital of the company	Debentures contribute a loan
Share holders are members or Owners of the company	Debenture holders are creditors
When recommended by the Board dividend could be declared to share holders	Fixed amount of Interest on debentures paid before dividend declaration
Shares do not carry on any charge	Debentures generally have a charge on the asset of the company
Shares have restrictions Issue at a discount	Debentures do not have Restrictions Issue at a discount
Share holders have voting Rights	Debenture holders do not have voting rights
Dividend is payable only when profits are there	Dividend is payable whether profits are there or not
No fixed dividend	Rate of Interest is fixed