Question

Give four differences between shares and debentures

Answer 1

Shares	Debentures
Shares are certificate of ownership of a company	Debenture are certificate of indebtness of a company
Shares are irredeemable	Debentures are redeemable
Shares have voting rights	Debentures have no voting rights
Earns dividends	Earns interest
During dissolution of company shares are paid last.	During dissolution of a company debentures are paid first
Shares are units of capital in a company	Debentures are units of a loan given to the company
Dividend rates on ordinary shares are based on profits	Interest rates for debentures are fixed at the time of issue.