Differences between debt and preference share, Ask an Expert

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Differences between Debt and Preference Share Capital

Differences between Debt and Preference Share Capital are given below:

DEBT

PREFERENCE SHARE CAPITAL

Interest is tax allowable

Interest is a legal obligation

Debt finance is always secured

Debt finance is a pre-conditional

Has a superior claim

Dividends are not tax allowable

Dividends are not a legal obligation

Preference is not secured finance

Is not conditional finance

Has a residue claim (after debt)

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M9519942

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