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Compare equity vs debt?

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29th Nov 2009 by cocacolabuffet

Equity represents ownership of a property or a company whereas debt represents what is owed to others. Debt usually incurs interest payments on the principal whereas equity does not pay interests. Equity holders share profits of a property or a company whereas debt holders do not participate in profit-sharing.



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11th Nov 2009 by Burt Carlson

In the business world debt is the sum of money borrowed from lender(s) under an agreement specifying the terms of repayment. Equity is the difference between this debt and the assets of the business. This difference is also called book value. Also, equity can include common or preferred stock. This is money that has been invested in the business in exchange for stock.

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9th Nov 2009 In Investing 2 Answers | 3418 Views
Subjects: debt, equity,

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