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7. Why would investor prefer to invest in Debentures of a company rather than in its shares?

An investor prefers to invest in debentures of a company rather than its shares.  Investment in debentures provides investors with regular income and involves minimum risk. The debentureholders receives interest on debentures even when the company incurs losses or does not have sufficient profits. As against this, by investing in shares, the investor is not assured of regular income/returns. The return on shares is provided in the form of dividends which depends on the earnings of the company. As the earnings of the company are often inconsistent, thereby the dividends also remain inconsistent. Thus, to minimise this risk involved an investor prefer to invest in debentures. This provides a guaranteed and regular return that too at a fixed rate.

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debentures gives a fixed rate of return after a fixed period of time even if the company incurs loss and thus involves less risk but share's rate of return is not predictable and risk rate is very high so investors would prefer to invest in debentures rather than in its shares 

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An investor prefers to partly invest in shares and partly in debentures in order to have regular income with higher returns and at the same time with minimised risk involved. By investing in shares, an investor gets return in the form of dividends which depends on the earnings of a company. Therefore, higher the earnings, higher will be the dividends to an investor. However, there is always a risk involved in dividends due to inconsistency in the earnings of a company. Thus, to minimise this risk involved an investor prefer to diversify his investment by partly investing in debentures. This provides a guaranteed and regular return that too at a fixed rate.

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an investor preffers to invest in debentures of a company rather then in shares as debts provide us regular return and even in the loss of the company they are liable to pay interest on the debts 
in the state of winding up the debts are given prefence to redeem first in comparison to shares

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 who gave us all thumbs down ??

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i don't no   

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DEBENTURES' PREFERENCE OVER SHARES:

1. assured and fixed return.

2. fixed maturity period.

3. negligible risk of default.

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