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i mean in what features they differ from each other?
Shares are small peace of total capital ,documented and has a face value offered for public subscription.general public who directly subscribe shares from primary or secondary market are called ordinary shares ,and shares which can be converted to debentures are known as debenture converted shares which will result in debt capital of the company
Shares can not be converted to debentures while debentures can be converted to shares. Further, on shares a shareholder is entitled of dividend while on debentures the debenture holder is entitled of interest.
March 26, 2015 By Surbhi S 8 Comments
Investment in shares and debentures has now taken a drastic position in the society. People of every age, gender, religion, etc whether they are youngsters or elders, men or women, Hindu or Muslim invest in various investments with the aim of earning more and more money. Novice investors might not understand about these terms, So here we have an article not only for beginners and existing investors, but for all the people who have any doubts in understanding the two. Let’s start the knowing difference between Shares and Debentures
Ordinary Shares is the Shares that owned by the Company while Debenture converted shares are the borrowed funds of the company. The ordinary shares called as the owners while debenture converted shares are the creditors.