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WHAT IS MEAN BY SHARE & DEBENTURE? WHAT IS THE DIFFERENCE
BETWEEN THEM?
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Answer Posted / md.asif
SHARE IS A SMALL PART OF THE CAPITAL IT IS SUBSCRIBED ON
ISSUE OF PROSPECTUS BY THE PUBLIC COMPANY. SHARES ARE
PURCHASED BY THE PEOPLE WHO ARE CALLED SHARE HOLDERS. THE
COMPANY WILL GIVE SOME RIGHTS TO THE SHARE HOLDERS IN THE
COMPANY ON PURCHASE OF SHARES. IN RETURN TO THE SHARES THE
COMPANY WILL PAY DIVIDEND TO THE SHARE HOLDERS
DEBENTURES IS THE LOAN BORROWED BY THE COMPANY ON SECURITY
BASIS.INTEREST SHOULD BE PAID REGULARLY TO THE DEBENTURE
HOLDERS. DEBENTURES ARE CONSIDERED AS LONG TERM LIABILITY.
IT SHOULD BE REPAID BACK WITH THE TIME MENTIONED IN DEBT
INSTRUMENT. ON WINDING OR AS-14 (AMALGAMATION,
ABSORPTION,RECONSTRUCTION) TOOK PLACE DEBENTURE HOLDERS
SHOULD BE REPAID BACK
| Is This Answer Correct ? | 2 Yes | 1 No |
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