The shares, bonds, debentures issued by corporate bodies, units issued by mutual funds, or treasury bonds, saving bonds or bonds issued by the Government of Nepal and such other securities specified by Securities Board of Nepal to be transacted or transferable through the stock exchange or the instrument to purchase, sell or exchange such securities.

Debenture/bond is a debt instrument issued by the institution with a condition that the issuing institution shall pay interest at a rate fixed at the time of issuance and the principle at its maturity. The interest may be paid semi-annually or annually. A debenture normally has a face value of Rs. 1,000.

Ordinary share also known as common share is share of a company having right to vote in company’s meeting. It represents a normal equity ownership of a company. The holders of ordinary shares are entitled to receive proportionate profit of the company (dividend) as decided by the company’s management. The dividend to ordinary shareholders are paid only after payment of preference shareholders.

Preference share means the share of a company having right to receive dividend before payment of ordinary share. Preference shareholders are to be paid before ordinary shareholders if the company enters bankruptcy. Based on terms specified at the time of issuance, preference shareholders are entitled to receive dividend even for year(s) when the company suffers loss.