Definition of Shares
Meaning – A share is one unit into which the total share capital is divided. Share capital of the company can be explained as a fund or sum with which a company is formed to carry on the business and which is raised by the issue of shares Definition – The capital of a company is divided into parts, called shares. The shares are said to be movable property and, subject to certain conditions, freely transferable, so that no shareholder is permanently or necessarily wedded to a company.
Definition of Debentures
Meaning – A debenture is an instrument issued by a company under its common seal as acknowledgment of a debt. It contains a contract for repayment of the principal amount on or before a specified date and for payment of interest at a fixed rate until the principal sum is repaid. “Debenture” includes debenture stock, bonds or any other instrument of a company evidencing a debt, whether constituting a charge on the assets of the company or not; It is evident from the definition that the term debentures covers both secured and unsecured debentures. Debentures are generally classified into different categories on the basis of:
(1) convertibility of the instrument (2) Security of the Instrument, (3) Redemption ability (4) Registration of Instrument
Difference Between Debenture & Share
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