Debentures

Debentures

Meaning and definition:

A debenture is issued by company to secure loan. It is
written letter of acceptance issued by company to
secure loan in which interest, surety and conditions
regarding return of loans are recorded.
It incudes debenture stock, bonds, term finance
certificate or any other instrument of a company
evidencing a debt.
 Debentures

Debenture Stock
It is form of equity having fix payments at fixed time
intervals. On winding up of company, the debenture
stocks has preference in repayments over common
stocks.
 Debentures

Difference between share holder and Debenture

holder:
There are following difference between the two:
1: Status
2: Voting Right
3:Income
4:Charge on Assets
5:Redemption
 Debentures

Difference between share holder and Debenture holder:

There are following difference between the two:
6: Order of Payment
7: Priority of winding up
8: Bonus
9: Nature of Capital
10: Payment
11: Discretion
12: Rate