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Question
What is the difference between debt and equity?
 Question Submitted By :: Neeraj Sharma
I also faced this Question!!     Rank Answer Posted By  
 
  Re: What is the difference between debt and equity?
Answer
# 1
debt means an amount borrowed by the company and need to be 
repaid. equity investments are brought in by the investors 
who like to share the ownership.
 
Is This Answer Correct ?    18 Yes 3 No
R.padmalakshmi,student
 
  Re: What is the difference between debt and equity?
Answer
# 2
debt and equity bith are types of borrowings that companies 
make from general public. 
Debt holders are like money lenders, companies are obliged 
to pay back the money to debt holders even if its making 
loses. They are the first ones who are paid back money even 
before equity holders.
Equity holders on the other hand are the owners of a 
company. They dont just share profits but also loses that a 
company make.
 
Is This Answer Correct ?    14 Yes 3 No
Shruti
 
 
 
  Re: What is the difference between debt and equity?
Answer
# 3
debt is the money which company has a obligation to pay in 
any condition.they get predecided interest not profit
equity holder is the owner of company .
 
Is This Answer Correct ?    2 Yes 1 No
Sachin Sharma
 
  Re: What is the difference between debt and equity?
Answer
# 4
Debt is a loan borrowed by a company from financial 
institutions like banks  and money lenders , etc. They are 
provided interest as the remuneration and they are the 
creditors of the company.
Whereas equity is collected from general public or 
institution through the issue of shares.They get 
remuneration in the name of dividends. The holders of 
shares are the owners of the company and they take part in 
it's affairs.
 
Is This Answer Correct ?    11 Yes 0 No
Manju
 
  Re: What is the difference between debt and equity?
Answer
# 5
debt means the company must pay the intrest,and it is the 
repayable ammount,when the company pay the dividend the 
company first prefer to the debenture hoders.
but the equity ammount does not pay,the compny only pay the 
dividends,butnot pay any intrest the dividend ammount is 
mainl depending on profits of the company.
 
Is This Answer Correct ?    2 Yes 0 No
I K Pavan
 
  Re: What is the difference between debt and equity?
Answer
# 6
debt means agreeing to pay the amount for which we have taken
loan but where as in the case of debenture the company has
to pay to the debenture holder irrespective of profits where
as they get fixed rate of intrest as they dont nhave voting
rights at the time of liquidation they will be giving the
first preference

equity are the owners of the company where the dividend will
be declared out of profits they has right to participate in
the meetings having voting rights at the time of liquidation
they will be getting last preference
 
Is This Answer Correct ?    0 Yes 0 No
Ravi
 
  Re: What is the difference between debt and equity?
Answer
# 7
Debt Is Borrower From Banks& other Funding Agency.
But Equity Is Individual Contribution And Liable have the 
company
 
Is This Answer Correct ?    0 Yes 0 No
A.dhanabal
 
  Re: What is the difference between debt and equity?
Answer
# 8
Debt means the amount borrowed by the company form outsiders like financial institutions, lending organisation and etc.

Equity means amount invested by it's share holders in business and it's proprietor. they can get the dividends out of profits earned by the company.
 
Is This Answer Correct ?    0 Yes 0 No
Damu1707
[Cbit]
 
  Re: What is the difference between debt and equity?
Answer
# 9
Debt means Borrowed Capital(debenture) from borrowers it may
be Financial Institutions, Banks, money lending companies etc.
Fixed amount of Interest is paid to its Debenture holders. &
this type of capital funding is cheaper than Equity 
Equity is nothing but raising funds from general public they
have least priority and Dividend is required to be paid only
if there is profit remains for it.
 
Is This Answer Correct ?    0 Yes 0 No
Abhijeet
 

 
 
 
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