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Hi John
Can you please tell me what is an issued share capital and a debenture and how they look like please?
If i buy shares in a company, what do i receive physically?
Share capital and debentures are both explain in our free lecture on company accounts.
Share capital is the capital paid in by the owners (the shareholders) and they receive a dividend. However the amount of the dividend will vary from year to year depending on how well or badly the company is doing.
Debentures (or bonds or loan stock, which are the same thing) are long-term loans to the company. The lenders received fixed interest on the loans.If you buy shares you receive a certificate stating how many share you own. (For some companies they are no longer printed on paper but are recorded electronically)
I do suggest that you watch our free lectures. They are a complete course for Paper F3 and cover everything needed to be able to pass the exam well.
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