Saturday, 26 September 2015

DIFFERENCES BETWEEN SHARE HOLDER AND DEBENTURE HOLDER


SHARE HOLDER
DEBENTURE HOLDER
One of the owners of the Company and has proprietary interest in the Company
Only a creditor of the Company
When the Company makes profits and the board recommends, share holder gets a share in the profits
Gets a fixed rate of Interest whether the Company makes profit
No security for his Investment
Normally debentures are security
Eligible for voting rights
No voting Rights
On liquidation, share holders are paid last
Ranks priority with regard repaid

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