Difference Between Share and Debenture

Difference between Share and Debenture:

SL.NO	FEATURE	SHARE	DEBENTURE
1.	Nature	Contribution to capital of a company (Deemed Own)	Loan to a company (Lender)
2.	Whether Repayable	Normally no, Company repays to a share holders only at time of winding up of company.	Normally yes, Repayable after specific period. Example: Debenture @9%for 10 years repayable after 10 years.
3.	Monetary Benefit	a)      Dividend b)      Price Appreciation	Interest
4.	Whether eligible to become a director of company	Yes	No
5.	Voting rights	Yes	No

POINTS TO REMEMBER:

1. Exporter gets benefited when the Rupee is weakened.
2. Importer gets benefited when the Rupee is strengthened.
3. In ‘Forward Contract’, irrespective of market rate the exporter will get Rupee equivalent as per agreed rate.
4. In ‘Option Contract’, the customer has the right to buy or right to sell without any obligation.
5. First Generation Economic Reforms: Liberalization, Privatization, Globalization.
6. FDI can be 74%in private sector Bank and FDI can be 51% in Public sector Bank.
7. Local area development Banks (1996 – 1998), totally private.
8. Up to 1000 rupees RBI can release coins.
9. Up to 10,000 rupees RBI can print notes.
10.  Contribution of GDP – Agriculture 14.3%, Industries 29%, Service 57%.
11. Priority of Payment on Liquidation of a company:

a)                  Expenses of Liquidator ( The person who closes company)

b)                  Salaries and Wages to employers

c)                  Secured Creditors

d)                 Government Dues

e)                  Unsecured Creditors

f)                   Preference Share Holders

g)                  Equity Share Holders

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COPY-WRITE OWNED BY PRAMOD KUMAR