Consider the following difference(s) between equity and debentures:
- While issuing of debentures does not dilute the control of the existing shareholders, equity financing dilute the control of existing shareholders
- Equity holders are paid before debenture holders at the time of liquidation
Which of the above statements is/are correct?
Second statement is incorrect because debenture holders are paid before equity holders at the time of liquidation.
This question is a part of GKToday's Integrated IAS General Studies Module