Differences between Debentures and preference share capital?
Answer Posted / neerajkumar.che
hello,
The difference between debentures and preference capital is
that debentures are the debt instrument issued by the
company , which could be secured or unsecured.Debentures
also have call option,convertiblity option.Debentures
holder do not hold the voting right.Debentures could be
converted into common shares.Debentures hold the coupon
payment.At the time of liquidation of the company they are
above the preference shareholders in getting back their
money.They do not have any liblity.
Preference share is long term equity capital of the
company.This is liablity owed by business to
shareholder.Preference share holders are entitled to get
the share dividend before common share holders.They too, do
not enjoy the voting right in annula general meeting of the
company,but voting right can be grated to them in condition
where company deferred the payment of dividend for
consecutive 3 years.They have limited liblity toward the
amount of their investment in the company.
Is This Answer Correct ? | 27 Yes | 4 No |
Post New Answer View All Answers
What are the two accounts,automatecly closed?
Define general life insurance.
What is appreciation and depreciation of currency?
What Is Adjustment Credit?
What is the education qualification required for po exam?
PLEASE SEND MODEL QUESTIAN PAPER TO MY EMAIL salimallappra@gmail.com
I have qualified in the Axis Bank aptitude.Now my interview is on Nov.So pls tell me what questions are asked in the interview and tell me the reference book for interview in Axis Bank.
List Some Features Of Pff?
What are the various money market instruments?
What techniques are used for the analysis and interpretation of financial statements?
What are the implications of OROP?
What is 'laghu udhami credit card (lucc) scheme and its features?
How can your work experience benefit NABARD?
What is meant by priority sector?
Tell something about E- Choupal?