Meaning And Types of Shares, Debenture And Other Securities - SS1 Economics Past Questions and Answers - page 1

Common shares give the shareholder voting rights, while preferred shares give the shareholder priority over common shareholders in receiving dividends and in the event of the company's liquidation.

Debentures are a type of debt instrument that companies use to raise capital. When a company issues debentures, they are borrowing money from investors, and they promise to repay the principal and interest at a specified time in the future. Debenture holders do not have any ownership rights in the company, unlike shareholders who own a portion of the company.