Question

1. In brief, what are bonds?
2. Mention 3 types of bonds?
3. In brief, what are the shares?
4. Mention types of shares?

Answer 1

When a company or the government needs a loan, they issue a bond to
finance that loan.
The company or the government asks for the money for a fixed period
of time. During that time, the company pays the investor a set amount of
interest payments at a set interval of time. The interval can be semiannual,
quarterly, or monthly for example.
The 3 different types of bonds are
1) U.S treasury bonds - Bonds issued by the U.S government.
2) Corporate bonds - Bonds issued by a corporation.
4) Municipal bonds - Bonds issued by the U.S state and local governments.
Shares are shares of ownership in a corporation. A company can raise
money in the capital markets by issuing shares to investors.
A share is a type of security that gives ownership of the corporation
to the shareholder depending on the number of shares of that corporation the investor
owns.
The different types of shares are common stock and preferred stock.
Common stockholders can vote at shareholder meetings
and receive dividends.
Preferred stockholders do not have voting rights, but they have
a higher claim on assets of the corporation.