- As soon as you buy shares in company you become partial owner in that company,whereas debenture holder is creditor of company.
- Shareholders earn their dividend only when company earns profit, whereas interest on debentures must be paid, didn’t matter company is making profit or not.
- Investment in shares is like unsecured investment whereas debenture are generally secured through assets of company.
- Shareholders are authorized to take part in general meeting of company whereas debenture holder have no right to attend, unless any decision affection their interest is taken.
- Through election of board of directors shareholders control affairs of the company. Debenture holders not concern about management and control of the company.
- During winding up of a company debenture holders have better claim over shareholders. Debenture holder must be paid before shareholders.
Everyone has witnessed huge market decline in the month of March when our PM Narendra Modi suddenly announced lockdown to tackle covid pandemic. Sensex stock market index reached all time high of 42273.87 in January of 2020 and from there it fallen down to below 26000 pts, nearly 40 % down. And from there it started healing. My Investments and COVID-19 Before this great fall my all investments were in undervalued stocks with very low P/E multiple, attractive earnings and exciting track record. Thanks to this quality stocks my own portfolio fall nearly 22 %. Although my 22% of capital vanished, I feel very delighted my portfolio beaten the market index(Sensex down nearly 40%) with significant points. In the last year of your college generally you are not backed with huge capital support, and your capital is very limited. So securing capital is my first priority. Back on the track, I sold all the stocks with 22 % capital loss and secured rest of the principle capital