Equity shares represents a share of ownership in a company /or corporation. As a unit of ownership, equity shares(ES) typically carries voting rights that can be exercised in corporate decisions. Preferred stock(Preference Shares) differs from common stock in that it typically does not carry voting rights but is legally entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders.
DEBENTURE is a long-term debt instrument used by governments & large companies to obtain funds. It is similar to a bond; except the securitization conditions are different. A debenture is usually unsecured in the sense that there are no liens /or pledges on specific assets. It is however, secured by all properties not otherwise pledged. In the case of bankruptcy debenture holders are considered general creditors(Normal Creditors).
The advantage of debentures to the issuer is they leave specific assets burden free, & thereby leave them open for subsequent financing.
Debentures are normally freely transferable by the debenture holder.