What are examples of capital market and money market?
A capital market is a financial market in which long-term debt or equity-backed securities are bought and sold. Capital markets are defined as markets in which money is provided for periods longer than a year.Capital market instruments used for market trade include stocks and bonds, treasury bills, foreign exchange, fixed deposits, debentures, etc. As they involve debts and equity securities, the instruments are also called securities, and the market is referred to as securities market.The money market is where financial instruments with high liquidity and very short maturities are traded. It is used by participants as a means for borrowing and lending in the short term, with maturities that usually range from overnight to just under a year. This includes assets such as certificates of deposit, or CDs, interbank loans, money market mutual funds, Treasury bills (T-bills), repurchase agreements, commercial paper and short-term securities loans. The Federal Reserve Board tracks money markets through its flow of funds survey.https://www.ways2capital.com/
What is an example of the difference between bond and debenture in India?
Both bonds and debentures are instruments available to a company to raise money from the public. This is the similarity between the two, but on closer inspection, we find that there are many glaring differences between the two.Bonds are more secure than debentures. As a debenture holder, you provide unsecured loan to the company. It carries a higher rate of interest as the company does not give any collateral to you for your money. For this reason bond holders receive a lower rate of interest but are more secure.If there is any bankruptcy, bondholders are paid first and the liability towards debenture holders is less.Debenture holders get periodical interest on their money and upon completion of the term they get their principal amount back.Bond holders do not receive periodical payments. Rather, they get principal plus interest accrued upon the completion of the term. They are much more secure than debentures and are issued mostly by government firms and debentures are issued by registered company.
What are examples of primary data and secondary data?
Primary data is directly belonging to your research which is collected by you, processed by you. Secondary data is collected by some organization or individual and they make a clean data to ready to useful information.
What is the difference between bonds and debenture?
Any organization big or small, it requires fund to survive in the market. Generally organization raises the fund with the help of equity or debt instruments. In equity, company issues shares and the shareholders become partners of the company. In the case of debt, company asks for loan. Both bonds and debentures are debt instruments introduced by a company. A company uses both bonds as well as debentures in order to raise finance for the company.There is a very thin line between bonds and debentures if we get into the details of differentiation,MeaningBonds‘A bond is a financial instrument showing the indebtedness of the issuing body towards its holders’ Bond is a written promise issued to repay loan on a specific maturity date. So, a promissory note or a promise is issued by the company on which a specified date will be mentioned, by which the company may repay the loan.Debenture‘A debt instrument used to raise long term finance is known as debentures’. A company uses debentures in order to raise short-term capital too. Mostly debentures are not asset backed, which means debentures are not secured by any collateral.CollateralBonds are generally secured by collateral. Bonds are usually secured instruments.Debentures can be secured or unsecured.Interest rateBonds are generally issued by government and there are low chances of govt. to have fault, which is why interest rate is also low of bonds.Debentures are issued by public company. Hence, risk is high here. Equally the interest rate of debentures is also high.Issued byBonds are issued by government agencies, financial institutions, corporations etc.Debentures are issued by private companies.PaymentAccrued payment is done under bonds. Accrued means, at the time of maturity the entire amount along with interest rate gets repaid. Hence the principle amount is given at the time of maturity.Periodic payment is done under debentures. Periodic payment is done by every 6 months or a year.TypesBonds1) Floating rate bonds.2) Fixed Rate bonds.3) Inflation Index bonds.4) Option bonds.Debentures1) On the basis of transfer-ability or records.a. Registered debentures.b. Bearer debentures.2) On the basis of Redeem-ability.a. Redeemable debentures.b. Irredeemable debentures.3) On the basis of convertibility.a. Convertible debentures.b. Non-convertible debentures.
What is the difference between bond, equity, share, and debenture?
The common thing about all is that these all provide you benefits in terms of interest, dividends and share in profits. Equity shares are issued by the companies to collect money from the market by giving the share holders right in ownership. The return from the shares in terms of dividend. Shares are traded online through different online share trading portals and you can buy or sell the shares at any time, which is not possible with debentures or bonds. On the other hand, debentures are issued to get loan from the public. These are like liability for the company. You get interest on your debentures. These are more secure than shares. Though bonds and debentures are more or like same, the only difference between them is that bonds are issued by government bodies, while debentures are issued by private companies.