Write about Equity vs. debt, Stocks and bonds, Finance & Capital....

Write about Equity vs. debt, Stocks and bonds, Finance & Capital....

Expert Solution

Equity means the ownership into a company and it will be providing the equity holders with the owning of the stock and voting rights in the company. Dividend payments to the equity shareholders are also not mandatory.

Debt is often characterized by uniform payments in form of interest and these generally does not give any ownership rights and voting powers and these are acting as creditors.

Stocks means owning the equity capital of a company and it will give the ownership rights in a company and it will help the shareholder in having an exposure to the the expansion of the company and the growth of the company and gaining through capital appreciation.

While bonds will always be e characterized by Debt financing and it will not give any ownership rights, and it will always be providing up the interest but it can lead to the solvency risk if it is not managed properly as the fixed payments in form of interest cannot be avoided.

Finance means getting various projects financed through short term debt or long term debt .

Capital means companies money which is used in financing it's own project, whereas finance will be the external persons money used in financing of the companies project.

jeff jeffy answered 1 year ago

difference between equity vs debt and and explain how the bonds market operates.

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