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5Â years, 11Â months ago
5Â years, 11Â months ago
Debenture holders of a company are its Shareholders. In corporate finance, a debenture is a medium-to-long-term debt instrument used by large companies to borrow money, at a fixed rate of interest. A shareholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders may be referred to as members of a corporation.
Shares are the capital of the company, but Debentures are the debt of the company. The shares represent ownership of the shareholders in the company while on the other hand, debentures represent the indebtedness of the company. The income earned on shares is the dividend, but the income earned on debentures is interest.