There is no practical difference between the rights of a shareholder and those of the holder of a debenture.

Question

Quizplus · Accepted Answer

Shareholders have ownership in the company and have the right to vote on important matters such as electing the board of directors and approving major decisions. On the other hand, debenture holders are creditors of the company and have no ownership rights. They are entitled to receive fixed interest payments and repayment of the principal amount at a specified time in the future. Therefore, there is a significant practical difference between the rights of a shareholder and those of a holder of a debenture.

There Is No Practical Difference Between the Rights of a Shareholder