Features Equity Preference Debenture

1 Nature of Capital
Permanent / Long
term
Paid at during
winding up of
company/Redemable
Borrowed /Short or
Long term
2 Transferability/Conversion Easily transferable Convertible to Equity Convertible to Equity
3 Types
4 Voting Rights Yes Not all But some No
5 Status Owner ESH Owner PSH Creditor DH
6 Preference/Pirority 4 3 2
7 Participate in Management Yes Not all But some No
8 Acknowledgement Share Certificate Share Certificate
Debenture
Certificate
9 Returns(Divident/Interest) Flucating Dividend Fixed Divident
Regular Fixed
Interest
10 Right to Attend Meeting Yes Not all But some No
11 Right Bonous / Right Issue YEs Right Issue No
12 Redemiable No yes yes
13 Risk Higher Less than Equity
Less than share
holders
14 Issue Price
fv & par / Premium /
Discount
FV =100
FV =100 par /
Premium / Discount
Bonds
Borrowed Capital 25
/10/5 yrs
No
Creditor BH
1
No
Bonds Certificate
Fixed Coupon / Final
amt at time of
maturity
No
No
yes
minimum