Distinguish between Share and Debenture

Distinguish between Share and Debenture.

Points of Difference	Share	Debenture
1. Nature	Shares belong to the company’s own capital.	Debentures belong to the debt capital of the company.
2. Relationship	Shareholders are considered owners of the company.	Debenture holders are creditors of the company.
3. Income	Shareholders receive only dividends as income.	Debenture holders receive only interest at fixed rates as income.
4. Voting rights	Shareholders get voting rights in the general meetings of the company.	Debenture holders have no such voting rights.
5. Participation in management	Equity Shareholders participate in the management of the company.	Debenture holders cannot participate in the management of the company.
6. Refund Policy	In the event of company liquidation, after payment of all dues, the shareholders are refunded their dues.	In the case of company liquidation, the debenture holders are refunded first.
7. Existence of company	Company cannot exist without shareholders.	The existence of the company does not depend on the debenture holder.

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