What are the different types of shares and debentures?

What are the different types of shares and debentures?

The debentures are of following types:

  • Secured Debentures.
  • Convertible Debentures.
  • Unsecured Debentures.
  • Registered Debentures.
  • Non-convertible Debentures.
  • Bearer Debentures.

Is Bond same as debenture?

In a sense, all debentures are bonds, but not all bonds are debentures. Whenever a bond is unsecured, it can be referred to as a debenture. In British usage, a debenture is a bond that is secured by company assets.

What is the difference between shares and bonds?

“What is the difference between shares and bonds?” Simply put, when an investor buys shares they are buying part of a company; when they buy bonds, they are lending money to a company. Shareholders OWN part of a company whereas bondholders are OWED money by a company.

What is the difference between bonds and preferred stock?

Bonds offer investors regular interest payments, while preferred stocks pay set dividends. Both bonds and preferred stocks are sensitive to interest rates, rising when they fall and vice versa. If a company declares bankruptcy and must shut down, bondholders are paid back first, ahead of preferred shareholders.

What are the two types of debenture?

The major types of debentures are:

  • Registered Debentures: Registered debentures are registered with the company.
  • Bearer Debentures:
  • Secured Debentures:
  • Unsecured Debentures:
  • Redeemable Debentures:
  • Non-redeemable Debentures:
  • Convertible Debentures:
  • Non-convertible Debentures:

What are the 2 classification of bonds?

Bonds are usually categorized as short-term (1 to 5 years), intermediate-term (5 to 12 years), and longterm (more than 12 years). Short-term bonds are often referred to as notes, while those with terms of less than 12 months are called money market instruments. All bonds pay interest to their holders.