Which of the following statements regarding the differences between loan capital and share capital is NOT correct?
A shareholder is an owner of the company, a debentureholder is not
Shares may not be issued at a discount to their nominal value, debentures may be issued at a discount to their nominal value
A public sale of shares is known as a prospectus, the public sale of debentures is known as a listing
There are statutory restrictions on redeeming shares, there are no statutory restrictions on redeeming debentures
The public sale of shares and debentures are both known as a prospectus. The other options are true statements.
