What is the Difference Between Shares and Loan?

The main difference between shares and loans lies in their nature and how they are used:

Shares:

1. Shares represent ownership in a company, entitling shareholders to certain rights, such as receiving dividends and exercising voting rights in company matters.
2. Issuing shares is a way for a company to raise capital without incurring debt, making it less of a burden than loans.
3. Shareholders are more patient than banks, as they can be satisfied with future profits and dividends.

Loans:

1. Loans are a form of debt that needs to be repaid, along with interest, within a specified period.
2. Bank loans are considered stricter than share capital, as they require regular repayments and interest payments.
3. Loans can be more expensive than issuing shares, as they carry interest payments that add to the company's financial burden.

In summary, shares are units of ownership in a company that allow the issuing company to raise capital without incurring debt, while loans are borrowed funds that must be repaid with interest within a given period.

Comparative Table: Shares vs Loan

Here is a table comparing the differences between shares and loans:

Please note that this table provides a general overview of the differences between shares and loans. A more detailed comparison could be made depending on the specific types of shares or loans being compared.