Difference between Debenture holder and shareholder (Class 12)

Share your love

Looking for the difference between debenture holder and shareholder as per the syllabus of class 12 CBSE, ISC, and state boards

this topic is concerned with the Accounting for debentures chapter of Accountancy class 12.

I have explained this topic in detail.

Distinction between Debentureholder and shareholder (Class 12)

StatusDebentureholder is the lender of the companyA shareholder is the owner of the company.
ReturnA debentureholder gets interest on his investment at the specified rate whether the company earns a profit or not.A shareholder gets a dividend.
ControlA debentureholder has no right to control the activities of the company by voting or otherwiseA shareholder has a right of control over the working of the company by attending and voting in the General Meeting.
RiskDebentureholders are relatively safe. Secured debentureholders are almost free from risk.Shareholders are at a greater risk. They can even lose the amount invested in shares.
Share your love
Default image
Anurag Pathak
Anurag Pathak is an academic teacher. He has been teaching Accountancy and Economics for CBSE students for the last 18 years. In his guidance, thousands of students have secured good marks in their board exams and legacy is still going on. You can subscribe his youtube channel and can download the Android & ios app for free lectures.
Articles: 770

Leave a Reply


Ad Blocker Detected!

Our Website is made possible by displaying online advertisements to our visitors. Please consider supporting us and remove the AD - Blocker to read this article.