WHAT IS SHARE AND DEBENTURE ?

Question

Accepted Answer

Shares and debentures are financial instruments used by companies to raise capital from investors.

Shares represent ownership in a company and give the shareholder voting rights and a share in profits.
Debentures are a type of bond that companies issue to raise funds. They pay a fixed rate of interest and have a maturity date.
Shares are riskier than debentures as their value can fluctuate based on market conditions and company performance.
Debentures are considered less risky as they offer a fixed rate of return and are secured by the assets of the company.
Companies can issue different types of shares and debentures, such as preference shares or convertible debentures.

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