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what is the difference between debenture and preference share
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Answer Posted / suresh kola
Debenture are the loans of a company bearing certain coupon rate which should be paid every year irrespective of profit or loss...
Where as
Preference shares even though they carry a rate they will be provided the same rate of dividend.
For example if a company is carrying a profit more than 20% for that year and the preference shares carry only 13% then they will be provided 13% earlier to equity shares...
Thank you
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