Question

What are shares, bonds, and debentures?

Answer 1

Shares are issued by a company and any shareholder would become the owner of the said company.

Bonds are issued by a company to raise money or cash resources and sometimes need collateral properties to be pledged to issue bonds.

Dentures and bonds are terms that go hand in hand, not all bonds are debentures. Debentures are issued to raise resources and the company has to pay back its debentures holders. There is no pledging of any collateral property to issue debentures.