A company or firm always have funds of its own and borrowed money can be also used for business purposes. Share is the own fund or the capital of a company/business. Debentures are the debts. Usually, shares are offered for sale in stock market for a raise in capital. Also, it is classified into two, Equity and Preference. The price for which you buy a share or stock is called share price. Debentures are tools which is used to raise fund for a company. They are classified as Perpetual, convertible and non-convertible based on their characteristics. Coming to differences, in shares returns come in the form of dividend, in debentures, returns come as interest (fixed or floating). Shareholders are partial owners; debenture holders are creditors. Voting rights is not given to debenture holders. Debentures can be converted as shares but vice versa is not possible. Let's discuss the topic with the help of a power point presentation.

Shikha Bharti

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