A share certificate is an instrument in writing, that is a legal proof of the ownership of the number of shares stated in it. Every company, limited by shares, whether it is public or private must issue the share certificate to its shareholders except in the case, where shares are held in the dematerialization system.

According to Section 2(84) of the Companies Act, 2013, share means share in the "Share Capital of a company and includes stock except where a distinction between stock and share is expressed or implied"

A company needs funds for extension and development purpose without increasing its share capital, it can borrow from the general public by issuing certificates for a fixed period of time and at a fixed rate of interest. Such a loan certificate is called a debenture.

According to section 45 of the companies Act, 2013 each share of the share capital of the company shall be distinguished with a distant number for its individual identification. However, such distinction shall not be required, if the shares are held by a person whose name is entered as holder of beneficial internet as per the records of a company.

Bonus share means to utilize the company's reserves and surpluses, issue of shares to existing share holder without taking any consideration is known as Bonus shares.

(i) Issue of shares at Par:
Normally shares are issued at their face value or par value i.e at a price mentioned on the face of share certificate concerned. There are no legal restrictions on issuing shares at par/face value.
(ii) Issue of securities at discount:
When the shares are issued at a price below the face value they are said to be issued at a discount. For example, a share having the face value of Rs 10 is issued at Rs 8. The companies act 2013, prohibits the issue of shares at discount (Section 53), except sweat Equity share.

The main objectives of Company Law 1956 are:
(i) To sustain the trust and faith of Shareholders
(ii) To protect and preserve the rights of Shareholders
(iii) To have drastic control over all the activities of the company
(iv) To make regulation of an effective Annual Meeting,
(v) The investment of the general public should be used for the development of society or social welfare activities.

There are eight types of preference shares : 
(i) Cumulative Preference shares :
As the word indicates, all dividends are carried forward until specified, and paid out only at the end of the specified period.
(ii) Non-Cumulative Preference shares :
The opposite of cumulative, obviously. Dividends are paid out of profits for every year. There are no arrears carried over a time period to be paid at the end of the term
(iii) Redeemable Preference shares :
Such preference shares can be claimed after a fixed period or after giving due notice.
(iv) Non-Redeemable Preference shares :
Such shares cannot be redeemed during the lifetime of the company, but can only be obtained at the time of winding up (liquidation) of assets.
(v) Convertible Preference shares :
These shares can be converted into equity shares after a tinme period or as per theconditions laid doWn in the terms.
(vi) Non-convertible Prcference shares :
Non-convertible preference shares cannot be, at any time , converted into equity shares.
(vi) Participating Preference Shares :
Such shares have the right toparticipate in any additional profits, after paying the equity shareholders.
(viii) Non-Participating Preference shares :
Non-participating preference shares do not possess any right to participate in surplus profits or any surplus gained at the timeof liquidation of the company.

(i) When the share are issued at a price below the face value they are said to be issued at a discount.
(ii) For example, a share having the face value of Rs 10 is issued at Rs. 8.
(iii) The companies act 2013, prohibits the issue of shares at discount (section 53) except sweat Equity share.

(i) The definition of the term 'Share' under the Companies Act, 1956 (section 2(46)) includes stock.
(ii) A company can convert its shares into stock and vice versa by following the provisions of Table A (Article 36 - 39).
(iii) Stock is created from fully paid shares by passing an ordinary resolution in the general meeting.
(iv) The Article of Association of the company must permit this conversion.

(i) It is issued by the Company in the form of a certificate under the common seal.
(ii) It is movable property
(iii) Debenture holders are the creditors of the company
(iv) Debentures carry a fixed rate of interest.
(v) A debenture is redeemed after a fixed period of time.
(vi) Debentures may be either secured or unsecured.
(vii) Interest payable on a debenture is a charge against profit and hence it is a tax deductible expenditure.
(viii) Debenture holders do not enjoy any voting right.
(ix) Interest on debenture is payable even if there is a loss.

The earliest business associations in England were the "Merchant Guilds". Some of the merchant Associations or guilds who have regulated the companies.
(i) A Royal Charter established the East India Company in the year 1600.
(ii) In England, the Joint Stock Companies Act was passed for the first time in 1844.
(iii) In the year 1850, taking the English Joint Stock Companies Act 1844 as a base, a provision was made for registration of joint stock companies in India.
(iv) The Joint Stock Companies Act was passed in India by introducing the concept of limited liability in the year 1857.
(v) In 1913, the Indian Companies Act of 1913 was passed. The Act introduces the institution of private companies in the corporate sector in India. After Independence. Based on the recommendation of the Shri. H. C. Baba committee in 1950 and the provisions of the English Companies Act 1948, the Companies Act 1956 was introduced in the parliament.

Debenture is a document issued by the company for acknowledging the loan from the public.Debentures are generally classified into different categories on the basis of :
(i) Convertibility ofthe Instrument
(ii) Sccurity of the Instrument
(iii) Redemption ability, and
(iv) Registration of Instrument.
(i) On the basis of convertibility :
(a) Non-convertible debentures : These instruments cannot be converted into equity shares.
(b) Partly convertible debentures : A part of these instruments are converted into equity shares.
(c) Fully convertible debentures : These are fully convertible into equity shares.
(d) Optionally convertibility debentures : The investor can have the option to either convert the debentures at a price decided by the issuer or agreed upon at the time of issue.
(ii) On the basis of security :
(a) Secured debentures : These instruments are secured by a charge on the fixed assets of the issuer company.
(b) Unsecured debentures : These instruments are unsecured against the assets.
(iii) On the basis Redeemability :
(a) Redeemable debentures : It refers to the debentures which will be redeemed in future.
(b) Irredeemable debentures : It is a debenture, in which no specific time is specified by the companies to pay back the money.
(iv) On the basis of Registration, debentures may be classified as:
(a) Registered debentures : These are ssued in the name of a particular person, who registered by the company.
(b) Bearer debentures : These are issued to the bearer and are negotiable. Instruments, and are transterred by mere delivery.