Explain Three Differences Between Shares and Debentures
As suggested by the name this type can either be converted into equity shares or other forms of security by the holder. Debenture-holders are creditors of a company who provide loan to the company. Debenture Example Angel Investors Accounting And Finance Business Basics Bonds and Debentures both are types of borrowed capital. . It is a source of borrowed capital. These Debentures cannot be converted into shares or securities. State three differences between ordinary shares and debentures. Rate of dividend on equity shares is not assured whereas rate of interest on debentures is assured. A debenture which is repaid before the other debenture is known as the first debenture. In the context of company accounts explain the following. A debenture-holder is a creditor of the company but a shareholder is a part-owner of the company. The terms of conditions of the debentures determine if it will be partly or fully...