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Home » MBA Interview Questions » MBA - Banking Interview Questions » What is the difference between Debenture and Preference share ?

What is the difference between Debenture and Preference share ?

Expert Suggestions on Preparation for Computer Based CAT-09


What is the difference between Debenture and Preference share ?

When the capital of the company is not sufficient to carry on business the company raise loan by issuing what is known as debenture debenture holder money treated as a loan whereas preference shareholder money treated as a capital of the company. Debenture holder is not a properitor of the company in the contest preference share holder is a properitor of the company. Preference share holder has a right to get bonus or dividend from the company but debenture holder has no right to get dividend.



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