There is no correct answer to this question, since these instruments have different characteristics and offer different benefits. By issuing new shares and listing them on the stock exchange, an entrepreneur sells part of his company to the public, the stake depending on the amount of money the company needs as well as the percentage of the company he is comfortable selling. As opposed to bonds, when issuing shares, there is no debt that has to be repaid to the investors. Once listed on the stock exchange, the company can also benefit from other financial gains, such as using own shares as a collateral when accessing bank loans or as a currency to acquire competition. For more information about the benefits of listing, click here.
Bonds on, the other hand, involve borrowing capital from investors, in exchange for periodical interest rate payments. Bonds are an attractive instrument to entrepreneurs as issuing them does not affect the ownership of the company or how the company is operated, while, at the same time, offering the company exposure and publicity granted by accessing financing through the stock exchange. The money borrowed from investors has to be repaid at maturity, or in tranches. The funds can also be rolled over through an issuance of new bonds, replacing the previous issuance. Alternatively, the bonds can be converted into shares at maturity, or even at certain given moments before it, thus reducing the amount of money to be paid to bonds holders at maturity (they are referred to as convertible bonds).