Differentiate between shares and debentures.

Answer:

-A share is a unit of capital while a debenture is a loan to a public limited company
-Shareholders are the owners of the company while debenture holders are creditors to a company
-Shareholder earn dividends from profits while debentures earn interest which is an expense to the company
-Share represent capital investment hence does not require security while debentures represent loan hence security must be provided by the company.
-Shares cannot be withdrawn until the company dissolves while debentures can be withdrawn any time and refunded if redeemable
-Ordinary shares have voting right hence involved in decision making while debenture holders have no say in running of a company

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