Question

What is the main difference between equity shares and debentures?

Q: Answer-What is the main difference between equity shares and debentures?

Equity Shares represent ownership in a company and provide voting rights in decisions such as elections of the board of directors. Debentures are a form of loan taken by the company from investors, offering fixed interest but no voting rights. They are creditors, not owners of the company.

A Equity shares carry a fixed interest rate, while debentures have fluctuating dividends

B Equity shares represent ownership, while debentures represent a loan to the company

C Debenture holders are entitled to share profits, while equity shareholders only receive interest

D Equity shares are repayable at a fixed date, while debentures do not have any redemption date

E Debenture holders have voting rights, while equity shareholders are considered creditors

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What is the main difference between equity shares and debentures?

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