What are shares and debentures?

Answer by  Bobinski (1652)

When a person purchases shares, they actually become one of the owners of the company. Debentures are more secure than shares because you are guaranteed payments with high interest rates. Debentures are unsecured loans offered to a company. No collateral is given from the company but it pays a higher rate of interest to its creditors.

Answer by  Munawer (365)

Shares are a portion/percentage of investment in a company. Debentures are the loan types, such as bonds, TFCs, used to raise money by a company.