The correct answer is: Ordinary shares.
Ordinary shares are the class of finance held by the owners of the company. They are also known as equity shares.
Bond is the term applied to the various classes of debt capital. A fixed return is payable, and much less risk is carried by the holders of bonds than is carried by the ordinary shareholders. The holders are not owners of the company.
Preference shares are shares that have a fixed percentage dividend before any dividend is paid to the ordinary shareholders. They are therefore more akin to debt capital than to equity.
Convertible bonds will not be classified as equity before they are converted.
However for financial accounting purposes the value of convertible bonds must be split between the liability element and equity element for presentation in the statement of financial position.
