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Equity vs Debentures

Equity Shares :

  1. Owners
  2. Have voting rights and control
  3. No fixed dividend rate
  4. Dividend is an appropriation of profits
  5. Non convertible
  6. Shares are a part of Shareholders' funds in Balance Sheet
  7. Only on liquidation
  8. Maybe forfeited
  9. Paid after all other liabilities settled



  1. Lenders
  2. No voting rights and control
  3. Fixed interest rate
  4. Interest is a charge against profits
  5. Convertible
  6. Debentures are a part of Long Term Borrowings
  7. Are redeemable
  8. Cannot be forfeited
  9. Paid first on liquidation

Equity vs. debentures from meraskill
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