Skip to main content

Key differences between shareholders and debentures holders

 Differences between shareholders and debentures holders

  1. As soon as you buy shares in company you become partial owner in that company,whereas debenture holder is creditor of company.
  2. Shareholders earn their dividend only when company earns profit, whereas interest on debentures must be paid, didn’t matter company is making profit or not.
  3. Investment in shares is like unsecured investment whereas debenture are generally secured through assets of company.
  4. Shareholders are authorized to take part in general meeting of company whereas debenture holder have no right to attend, unless any decision affection their interest is taken.
  5. Through election of board of directors shareholders control affairs of the company. Debenture holders not concern about management and control of the company.
  6. During winding up of a company debenture holders have better claim over shareholders. Debenture holder must be paid before shareholders.
Labels:

Comments

Post a Comment

Please do not enter any spam link in the comment box.

Popular posts from this blog

My Investments and Returns: April 2024 - March 2025

  My Investments and Returns: April 2024 - March 2025 The Ground Rules Alright, folks, I’ve borrowed some of Warren Buffett’s genius ground rules from his famous letters—like borrowing your rich uncle’s best suit! I’m serving his wisdom with a sprinkle of my own goofy charm. Why? Because if you’re going to copy, go for the guy who buys companies like I buy snacks! Get ready for simple, Buffett-style tips that’ll make you feel like a money wizard—or at least fool your friends into thinking you are. Joke’s on them when you start sounding smarter than a stock market squirrel! Let’s roll! When we talk about yearly gains or losses, we mean market values—how our assets are valued at year-end compared to the start of the year. This may have little to do with realized results for tax purposes in a given year. Whether we do a good or poor job isn’t measured by whether we’re up or down for the year. Instead, it’s measured against the general performance of securities, like the S&P BSE Se...
Post a Comment
Read more

10 common mistakes in the share market by beginners

  10 common mistakes in the share market by beginners:- Mistakes? way of learning. Always learn from your mistakes, take a responsibility of own mistakes and try to avoid it, it shows high morals of man. But in share market, one thing always keep in your mind that mistakes in share market never be forgiven. So it never be good to commit any error, always try to learn from others. Maybe after your own mistakes, you would not able to stand again. There are 10 very common mistakes in the share market by the beginners:- 1. Looking on stock market as a tool of making quick money:- Beginners enter in the share market with the mindset that “ share market is gambling and they can make quick money here ” it’s wrong mindset. They mix Gambling with share market that is not right and it dishonor the share market and create bad reputation on others mind. In the gambling you put your money in bets but in share market you invest on companies. And with some basic knowledge you will never lose. So ...
Post a Comment
Read more

Stock Market Amid Indo-Pak Tension

  Stock Market Amid Indo-Pak Tension On April 22, 2025, a devastating terrorist attack struck the Pahalgam region of India, claiming 26 lives. The brutality of the assault, where attackers interrogated victims about their religion—demanding Hindu or Muslim identification, forcing men to disrobe for verification, or compelling them to recite the Kalma—shocked the nation. Failure to comply resulted in execution in front of families. This heinous act not only broke the nation's heart but also fueled widespread anger, as it was clearly designed to sow hatred between communities. Such attacks demand a resolute response. I believe India must take decisive and robust measures to send an unequivocal message to perpetrators: India is a strong, modern nation that will leave no stone unturned to protect its citizens. By demonstrating unwavering resolve, India can deter future acts of terror and reaffirm its commitment to national security. How to Invest in War-Like Situations War-like situati...
Post a Comment
Read more