ZIMSEC O Level Commerce Notes: Differences between shares and debentures
|Capital contributed by shareholders
|Shareholders are owners of the company
|Debenture holders are creditors to the company
|Dividends may fluctuate e.g. Ordinary share dividends
|Interest is fixed
|Dividends are only paid when a profit has been made
|Interest is paid whether or not profit has been made
|Are not attached or secured against company assets
|Can be secured against company assets.
|Can be ordinary or preference shares
|Can be mortgaged or naked.
|Are a risky form of investment
|Are a more secure form of investment
|Cannot force a company into liquidation
|Can force a company into liquidation
|Ordinary shares have voting rights
|All debentures have no voting rights.
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