Advantages of debentures over shares

Debentures offer several advantages over shares, primarily in terms of fixed returns and risk. Debenture holders receive regular interest payments, providing a predictable income stream, while shareholders may receive variable dividends that are not guaranteed. Additionally, debentures generally carry lower risk, as they have a higher claim on assets in the event of liquidation compared to shareholders. Lastly, issuing debentures can be less dilutive to ownership, allowing existing shareholders to maintain greater control over the company.