what is the difference between debenture and preference share
Answer Posted / hem lata
Preference share is a hybrid form of equity shares &
debenture.
Debentuer is a borrowed capital,but preference is owned
capital.
Interest on debenture paid before tax payment & dividend on
prefrence share paid after payment of tax.
Debenture hloder doesnot have the right to vote, whereas in
special case prefrence shareholder have right to vote
Debentuer carry less risk & give regular certain income but
prefrence share is risky as compared to debenture & didn't
give certanity of income
Is This Answer Correct ? | 31 Yes | 14 No |
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