Ask Experts Questions for FREE Help !
Ask
    veearrgee's Avatar
    veearrgee Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Jun 16, 2007, 01:13 AM
    What is Debentures,Equity Shares and Dividend
    Hello

    I like to know the What is Debentures, Equity Shares and dividend . Can any one give simple explanation on this. Why the companies are going for this.

    Thank you

    veearrgee
    shadab123_45's Avatar
    shadab123_45 Posts: 2, Reputation: 1
    New Member
    		  
    #2

    Jun 18, 2007, 10:13 AM
    Debenture is a debt instrument carrying a fixed rate of interest.A co. can borrow money by issuing debentures. A co. can satisfy its long term financial needs by issuing debentures.In consideration the co. has to pay a fixed rate of interest annully or half yearly.It is less risky and hence rate of return is low.

    Equity shares are those shares through which a co. can raised capital from the capital market.The basic difference between equity and debentures are that equity shareholders are the owner of the co. while debentureholders are the creditors of the co.

    Dividend is the distribution of profits earned by the co. to its shareholder .Only equity shareholder & preference shareholder r entitled 2 received dividend.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Issuing of shares [ 2 Answers ]

If a new corporation was to sell shares, how exactly is this recorded in the books. I would assume you would Dr. the cash account and maybe Cr. The stock account?

Outstanding shares [ 2 Answers ]

How do I find the outstanding shares, effect of dividend, fraction of a year, andweighted average? Year 2003 Outstanding shares December 31, 2oo2 40,000 Outstanding shares on dec 31, 2003 52,800 Outstanding shares on dec 31 2004 64,000 Outstanding shares on...

Shares applied for and shares alloted [ 2 Answers ]

I am a bit confused - the following is a question in my assignment: Xx Ltd was registered on 1 Jan with a capital of R80 000, divided into 10 000 5% preff shares @ R2.00 each, and 30 000 ordinary shares of R2.00 each. Preff shares were fully subscribed and duly allotted, but only 25 000 ordinary...

66% shares [ 1 Answers ]

Hi, I owned the 66% of one company Can I sell this company even when the guy that owned the other 33 % does not want to? Florida company

View more questions Search