Unlike shares, debentures do not confer ownership or voting rights to buyers. This is because debentures are issued solely to borrow money from debt markets and not to increase the number of shareholders. However, some debentures can be converted into shares.Continue Reading
Issuers typically pay interest during the lifetime of the debenture, while the principal is paid on maturity. In the United States, debentures are analogous to unsecured bonds and are backed solely by the creditworthiness of the issuer, according to Wikipedia. However, in countries such as the United Kingdom, debentures tend to be secured. Some types of debentures, referred to as convertible debentures, can be exchanged for shares of the issuing corporation. However, standard debentures are typically nonconvertible.
Unlike debentures, shares allow buyers to own part of the issuing corporation, determine the composition of a company's board of directors and get dividends. There are several types of shares, explains the Australian Securities Exchange. Ordinary shares have no atypical rights. They allow owners to share in dividends and grant them the right to vote during general meetings. Preference shares grant buyers a mix of special rights and restrictions. For instance, voting rights may be limited to certain periods of time or select circumstances.Learn more about Investing
As of September 2015, BP last split its stock on Oct. 4, 1999, doubling its number of shares and halving their price, according to BP. Stockholders' existing share prices were cut in half, and they were issued one new share for each share they already owned.Full Answer >
The formula for calculating dividends per share is stated as DPS = dividends/number of shares. In this instance, DPS stands for dividends per share, while the "dividends" in the formula refers to annual dividends that are paid, and the "number of shares" refers to the number of shares that are outstanding.Full Answer >
A four-for-one stock split is when one share of stock is divided into four equal shares while keeping the market value the same price, according to the Securities and Exchange Commission, or SEC. A stock split reduces the number of shares to make the share price more affordable.Full Answer >
Stocks are publicly traded shares of ownership in a company that can be bought and sold by investors like any other commodity. Holding shares in a company entitles the holder to a share of the profits, voting rights in how the company is run and, potentially, a profit when the shares are later sold.Full Answer >