What is shares and debentures Wikipedia?

What is debenture with example?

A debenture is a bond issued with no collateral. Instead, investors rely upon the general creditworthiness and reputation of the issuing entity to obtain a return of their investment plus interest income. … Examples of debentures are Treasury bonds and Treasury bills.

What is the difference between share and stock?

Definition: ‘Stock’ represents the holder’s part-ownership in one or several companies. Meanwhile, ‘share’ refers to a single unit of ownership in a company. For example, if X has invested in stocks, it could mean that X has a portfolio of shares across different companies.

How many types of shares and debentures are there?

Types of debentures

Sr. No. Particulars Debentures
4. Investors Debenture holders are creditors to the company
5. In case of liquidation Creditors(debenture holders) are paid off first
6. Voting rights No
7. Convertibility Debentures can be converted into shares

What are the 4 types of stocks?

Here are the most common types of stocks:

  • Income Stocks. As its name suggests, this security generates a steady and stable income in the form of a dividend. …
  • Cyclical Stocks. …
  • Blue-Chip Stocks. …
  • Speculative Stocks. …
  • Defensive Stocks. …
  • Growth Stocks.

What is an example of a share?

An example of share is when you are entitled to 1/2 of a property. An example of share is when you go out to a $100 dinner and you have to pay for half. A part or portion belonging to, distributed to, contributed by, or owed by a person or group. The pirates argued over their shares of the treasure.

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What are the two types of shares?

Thus, there are two types of shares: equity shares and preferential shares.

What is debentures and its features?

Salient Features of Debentures

It usually shows the amount & date of repayment of the loan. It has a rate of interest & date of interest payment. Debentures can be secured against the assets of the company or may be unsecured. Debentures are generally freely transferable by the debenture holder.