HELP ME PLS


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26 April 2010 CAN ANY ONE TELL ME THE DIFFERENCE BETWEEN SHARES AND SECURITIES?
DIFFERNCE BETWEEN BONDS AND DEBENTURES

26 April 2010 Security is a broader term which includes shares as well. There are two types of securities, Equity security and Debt Security.

Equity security comprises Share, Common Stock, Options etc. while Debt security comprised of Bonds, Debentures, Bank Notes, Coupons etc.

26 April 2010 Bonds and debentures are fixed income instruments which are taken by investors looking for regular, fixed income through payment of interest on the principal purchase.

Bonds and debentures are debt instruments with different types of exposure. In general terms bondholders are secured by access to the underlying asset in case of default by the issuer. Debentures, on the other hand, are unsecured, and debenture holders do not have recourse to assets in the case of default by the debenture issuer.

26 April 2010 Bonds r issued by a Government and thats the reason risk of default is very less.

Other side, Debentures r issued by companies where the risk of default is very high.

On the basis of these the maturity period changes.

Yield(rate of return) and the maturity always inversely related.

Hope u have observed in the newspapers anf if not observe E.T and u will make out the difference.

26 April 2010 Debenture and bonds are similar except for one difference-
bonds are more secure than debentures.A debenture is an
unsecured loan you offer to a company. The company does
not give any collateral for the debenture but pays a higher
rate of interest to its creditors and bondholders are paid
low interest. In case of bankruptcy or financial
difficulties, the debenture holders are paid later than
bondholders.

26 April 2010 The major difference lies in Securitisation i.e. Bond holder
can underlie the companies asset comparatively more than
Debenture holder. And another difference is Debenture
issued by the Government enterprise is called as bond.

27 April 2010 i totally agree with expert he already explained in detailed so now no need to explain anything but still if u have question then ask .

28 April 2010 THANK YOU SO MUCH SIR FOR CLARIFYING MY DOUBT


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