Monday 6 July 2015

Difference between and Share and Debenture

Difference between and Share and Debenture

Share and debenture is both financing instrument; however, there are some difference in both of these instrument, these difference is being explained below;

1.    Interest Vs Dividend payment
Debenture holder is paid interest, where share or equity holder is entitled to receive dividend.

2. Voting Right
Share holder has voting right and can participate in decision making through voting right where debenture holder does not have such rights.

3. Trading Market
Shares are normally traded in stock exchange, where the debenture is trade in bond market. It is important to note that both instruments are traded at market price.