I have seen people say that it is bad form to use catch with no arguments, especially if that catch doesn\'t do anything:
StreamReader reader=new StreamRead
The effective difference between your examples is negligible as long as no exceptions are thrown.
If, however, an exception is thrown while in the 'try' clause, the first example will swallow it completely. The second example will raise the exception to the next step up the call stack, so the difference in the stated examples is that one completely obscures any exceptions (first example), and the other (second example) retains exception information for potential later handling while still executing the content in the 'finally' clause.
If, for example, you were to put code in the 'catch' clause of the first example that threw an exception (either the one that was initially raised, or a new one), the reader cleanup code would never execute. Finally executes regardless of what happens in the 'catch' clause.
So, the main difference between 'catch' and 'finally' is that the contents of the 'finally' block (with a few rare exceptions) can be considered guaranteed to execute, even in the face of an unexpected exception, while any code following a 'catch' clause (but outside a 'finally' clause) would not carry such a guaranty.
Incidentally, Stream and StreamReader both implement IDisposable, and can be wrapped in a 'using' block. 'Using' blocks are the semantic equivalent of try/finally (no 'catch'), so your example could be more tersely expressed as:
using (StreamReader reader = new StreamReader("myfile.txt"))
{
int i = 5 / 0;
}
...which will close and dispose of the StreamReader instance when it goes out of scope. Hope this helps.