1)the total capital of a company is divided into a number of unit called share.
2)the value of the shares issued by a company. is called equity
****roughly you can say that share and equity both are same.****** 2)If you buy a share of a company, you are buying a piece of the company. and buying a share you become part of the company .For example, if the total capital of a business is Rs 1000 put together equally by 10 investors, that means that each person has bought share in the business for Rs 100 and each owns 10% of the business of the company..each of the 10 share holder bought 1 share of 100 rs equity. 4)bond is a debt instrument issued by company to raise fund. and company pay interest on bond. 5)equity is a financial instrument by which comapny company invite public to invest their money in the company and investor can become part of the company 6)Difference in equity and bond--->>>in case of equity you become part of the company ,and company share profit with you..but in case of bond you do not become part of the company you are just lending your money and expect a rate of interest. 6)debenture--->debenture is a debt instrument used by company to borrow money..Just like equities these can be transferred to anyone, but does not give right of voting in the companys general meetings. Debentures are simply loans taken by the companies and do not provide the ownership in the company 7)types of debenture---> There are two types of debentures: 1. Convertible Debentures, which can be converted into equity shares of the issuing company after a predetermined period of time. 2. Non-Convertible Debentures, which cannot be converted into equity shares of the liable company. They usually carry higher interest rates than the convertible ones **Both bonds and debentures are instruments available to a company to raise money from the public***
7)Difference between bonds and debentures---->
**Bonds are more secure than debentures** Long-term debt securities issued by the Government of India or any of the State Governments or undertakings owned by them or by development financial institutions are called as bonds. Instruments issued by other entities are called debentures 8) Differences Between Shares And Debentures . debenture is used by the company to borrow money and cannot take part in the management of the company while a shareholder has voting power in company and can take part in the management of the company. It is the basic distinction between a debenture and a share. Debenture holders will get interest on debentures and will be paid in all circumstances, whether there is profit or loss will not affect the payment of interest on debentures. Shareholder will get a portion of the profits called dividend which is dependent on the profits of the company A debenture is more secure than a stock, but not as secure as a bond . To compensate for this, companies pay higher interest rates to debenture holders. Shares can not be converted into debentures. Debentures can be converted into shares.