Compare shares and debentures.

Owned funds of the company.

Represents capital of the company.

Known as shareholders.

Will get dividends.

Deduction is not allowed.

No security for payments.

They have voting rights.

Can’t be converted to debentures.

No trust deed

Appropriation of profit.

High risk.

Don’t lien on asset of the company.

Don’t have leverage benefits.

Disclosed in balance sheet as equity and liabilities column.

Borrowed fund of the company.

Represents debt of the company.

Known as debenture holders.

Gets interest.

Deduction is allowed from profits.

Security for payment is there.

Can be converted into shares.

Charge against profit.

Trust deed is executed.

Most secured.

Have lien against assets of the company.

Have leverage benefit.

Not disclosed in balance sheet.