what is the difference between bond,debenture,shares and deposits?

Question

what is the procedure to issue

Answer 1

You are asking too big a question to be answered here. Anyway, I'll give u just an idea of what is what.....

Bonds and Debentures are debt instruments. The borrower (may be a Company ) issues the Bond or Debenture as the case may giving details of the interest to be paid and the period of the loan, and how the loan will be repaid. There are different types of bonds & debentures. When u buy a bond or debenture u become a creditor to the company.

Share is equity participation in the Company. When u buy a share, u become a shareholder of the company. The company will pay u dividend on the shares held by you (share of your profit in the company is called dividend).

Deposits are like any bank deposit. Interest is paid in various ways on the deposits.

To issue a share / bond / debenture, the company must be registered and must have the necessary minimum capital. Prior approval from the existing share holders, Company Law Board, SEBI, RBI etc is necessary...

Answer 2

Bonds - Open Ended and Close Ended. Open ended bonds can be traded. Close ended bonds have to be cashed after a fixed tenure. Bonds are issued for a fixed sum or multiples thereof.

Debenture. Convertible and non-convertibles. Debentures are issued for a fixed sum or multiples thereof. Convertible bonds can be converted into tradeavke "shares" subject to the conditions laid down by the promoter of such bonds. Non-convertible bonds have to be cashed after the expiry of the tenure.

Shares are issued by the companies for a particular price. T hese are tradeable on day-to-day basis in the share market.
Although once banned, now-a-days preferential shares are being issued by many companies to particular persons or a group to raise money. The face falue of the shares may be different from the one being charged in the Initial Promotional Offers (IPO).

Deposits are money deposited in a bank or any financial institutions which are authorised to accept deposits. Interest is paid on the Deposits at variable rates depending upon the duration or as prescribed the bank or financial institutions which accept Deposits.

For issuing bonds, debentures and shares, one has to take permission from the appropriate authorities. In the case of India, they are the Reserve Bank of India and Stock Exchange Board of India. Similar instutitons do exist in other countries too.

Answer 3

Bond (finance), in finance, a debt security

In finance, a debenture is a long-term debt instrument used by governments and large companies to obtain funds. It is similar to a bond except the securitization conditions are different. A debenture is usually unsecured in the sense that there are no liens or pledges on specific assets.

Share (finance), a stock or other security such as a mutual fund

Deposit, a specific sum of money taken and held on account by a financial institution (e.g. a bank) as a service provided for its clients. Financial institutions that take deposits are required to be regulated in virtually all jurisdictions.

Answer 4

bonds is a kind of loan the companies get by issues them people "buy" it, the company have to give back this money in a certain years, also company has to give interest for this money and this will be the profit for the person that buy them
shares are issue by companies , people buy them and u get also interest about them or if u buy enough of those u can be the owner of the corporation or just a member,if the company go background it doesn't effect the owner of the shares just he doesn't get any money back
deposit is the money that u put in a bank and or in a special organization, u never loose them only if u spend those money

Answer 5

BOND

It is a fixed security which gives you return after the maturity of the bond as like in Insurance policies.

DEBENTURES

These are shares in companies whose amount is reimbursed in fixed installments including the profit.

SHARES

These are share in companies which give you profit or loss according to its value in the stock market.

DEPOSITS

These are investments in firms and companies which give you the interest of your deposits there is no connection with profit or loss.

Answer 6

Deposit is to put (money) into a bank account Withdraw is to take (money) out of a bank account