02-06-2011, 01:53 AM
A formal document which either creates a debt or acknowledges it is called debenture or bond. It is a formal contract between the issuer of the debt security(borrower) and the holder(debtor). The terms debenture and bond are used interchangeably. When a government, semi-government, public financial instituition or company issues debt security, we call it bond. When a private company issues it, we call it debenture.
Companies divides their capital into small units of equal denomination. These units are called shares. The companies then sell these shares to increase their capital.
Income earned by the shareholder(who purchased the share) on shares is called Dividend.
Companies divides their capital into small units of equal denomination. These units are called shares. The companies then sell these shares to increase their capital.
Income earned by the shareholder(who purchased the share) on shares is called Dividend.
