stock market
Capital plays an important role in the formation of a company and a company requires capital at various junctures of its growth. As a company grows and expands in size the requirement for capital increases exponentially.
What are the Shares of the company?
When a company divides its total valuation of itself into equal parts, then each part of the company is known as a share. In order to raise funds from the public, the company divides its ownership into equal shares and issues these in the primary market for the public to buy.
Types of Shares
There are mainly two types of shares:
1). Equity shares
2). Preference shares
What are Debentures in Stock Market?
As we now know that companies sell ownership in their companies by issuing shares in the market similarly issue of debentures is an alternate way of raising capital for businesses without diluting their ownership.
Types of Debentures
There are different types of debentures issued by a company which are based on the needs and requirements of the company. The different types of debentures are:
1). Secured and Unsecured debentures
2). Registered and Bearer debentures
3). Convertible and Non-Convertible debentures
4). Redeemable and Irredeemable debentures
5). Specific Coupon Rate debentures
6). Zero Coupon Rate debentures
Know in detail about the Difference Between Shares And Debentures
