What is dividened and what is debenture?

Question

What is dividened and what is debenture?

Answer 1

A dividend is part of the earnings of the company that is being distributed to the shareholders.

A debenture is an unsecured bond that pays interest.  It is not a share and the rate of interest has nothing to do with the dividend rate.

Answer 2

A DIVIDEND is the money a company pays its shareholders.

It announces its profits at the end of a year and then states how much it is giving in dividend. Some of the profits will be kept back so that the company can meet its financial obligations in  the coming year.

How much dividend you get will depend on the number of

shares that you own.

A DEBENTURE  is a special kind of share. Really it is a security that a company issues in acknowledgement of debt.

Generally, the return on a debenture is slightly smaller than the dividend on a share. However, if the company has hard times then debenture holders will be paid off first, then (If there is any money left) come the shareholders.