Which of the following is not an ownership security?

Equity shares
Preference shares
Debentures
Both B and C

The correct answer is C. Debentures.

Equity shares and preference shares are both ownership securities. Debentures are debt securities.

Equity shares represent ownership in a company. Shareholders have the right to vote on company matters and to receive a share of the company’s profits.

Preference shares also represent ownership in a company, but they have a higher priority than equity shares when it comes to receiving dividends and assets in the event of a liquidation.

Debentures are loans that a company makes to investors. Investors receive a fixed interest rate on their investment, and the company is obligated to repay the loan at a specified date.

Debentures are not ownership securities because they do not represent a share in the company. Instead, they are a loan that the company makes to investors.