what is the difference between term deposits,bonds &
debentures?
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Answer Posted / anil kumar.sirangi
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.thats it..
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).however there r
different types in shares again..
Deposits are like any bank deposit. Interest is paid in
various ways on the deposits...
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