As companies need fund for the business operations it will raise funds from equity and debentures. As equity shares will sold in market by bringing IPO and FPO. Debentures will be sold in market and raised fund. Equity shares holders will get the dividend as the return on investment. Debentures will leave fixed rate of return. if the business is running very well the share price will go up in market and there is chance of dividend so investors in equity will get capital appreciation along with dividend. But for the debenture holder what ever will be business condition they will get interest payment. If business is running in loss equity investors capital may depreciate in market. what ever the condition the business need to pay the ii interest for the debentures. But the payment of dividend will be wish of the company. Equity share holders are the owners of the company and Debenture holders are the creditors of the company.