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1.Defineashare：Theshareistheinterestoftheshareholderinthecompanymeasuredbyasumofmoney,forthepurposeofliabilityinthefirstplace,andofinterestinthesecond,butalsoconsistingofaseriesofmutualcovenantsenteredintobyalltheshareholders.Inaword,thesharesareassetsinthecompanycapital,whichcangetdividendandrighttoinfluencecompanywithavote.Ordinaryshares:allsharesareordinaryunlessdefinedotherwise,theyshareprofitsequally,andthereisacertaindividend,besides,shareholderscanattendmeetingsandvoteoncompanymatters.Preferenceshares:theshareholdersofpreferenceshareshaverightwithpreferentialtreatment,theyhaveafixedratedividend,andwillreceivetheirdividendsfirstbeforeordinaryshareholders.Ifcompanymakeslosspaymentinoneyear,thepreferencedividendbecomesthedebtwhichneedtobepaidwhenthecompanymadeprofits.,wheretheymaybepurchased.Sharesinpubliccompanypurchasedonstockexchange.Whilstsharesinprivatecompanypurchasedbycompanysecretary.Shareholdersofordinaryshareshavearighttoacquiredtheshare.2.1.Companycanraisemoneybutusuallyneedsauthorityofboardofdirectors,sometimesmanagingdirectorhasauthoritytoborrowonhis/herown,notusuallyasingledirector.Acompanycantakealoanandissuesshares.Debentures(sometimeslikenedtoacompanymortgage)canbeissuedtoraiseloancapital.2.Debenturesarelikeacompanymortgage,theylistedwithcompanyregister.Besides,debenturesandshareshavesomesimilarities,theyaretermedassecurities,andtheyallboughtandsoldonstockmarket.Buttherestillaresomedifferences:intermsofdebenture,holdersarethencreditorsofcompany,interestmustbepaidevenifnoprofit,companiescanbuydebenturesissuedbythemselves.3.Companycharges(SecuritiesinScotland),itlikesstraightforwardloans,whichregisteredatCompaniesHouseTherearetwotypesofcompanycharges:Fixed;thisagreementspecifiesanassettoactassecurityfortheloan.Floating;thischargedoesnotattachtothepropertyuntilitisdeliberatelyinvoked.4.Secured/unsecuredloans;preferentialratesofinterestcansometimesbeobtainedifacompanyassetisusedascollateralagainsttheloan.Defaultingontheloanmeansthelendercanselltheassettopayoffthedebt.Ifanassetisusedtheloanisˉsecuredˇagainstit.Unsecuredloansarenotprotectedthisway.3.TherulesthatgovernhowthecompanycanraisefinancecanbefoundintheArticlesofassociation.DecisionsonborrowingareusuallytakenbytheBoardofthedirectors.TheManagingDirectorcanbeauthorisedtoactalonesometimes,butasingledirectorcouldnotenterintoaborrowingagreementonbehalfofthecompany.Inaddition,otherpowerstoraisefinancecanbeagreedatCompanyGeneralMeeting.Lendersmustensurethatthedirectorshavethepowertoborrowotherwisetheloanmaynotberecoverable.Ifthedirectorshasactedovertheirpoweranditisnotrecoverable,itbecomesknownas‘ultravires’andmaybeunenforceable.However,insomecasestheboardcandecideatitsmeetingtoratifythedecision.