What is the difference between debt and equity?
Answers were Sorted based on User's Feedback
Answer / saurabh
A company can raise capital by using the two means - Equity & Debt
Equity means ownership. Everyone who owns an equity share of a company owns a part of the company. He/she can influence the decision making in the company
Debt represents an obligation. The company is obliged to pay the debt provider interest on a regular basis and repay the principal on the agreed upon date. the loan provider has no say whatsoever in the decision making of the company...
Is This Answer Correct ? | 0 Yes | 0 No |
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 ? | 1 Yes | 6 No |
What is a demand draft and overdraft?
0 Answers State Bank Of India SBI,
dicsuss with appropriate examples the firm's asset management decisions
What is MFN? What is Gold Standard?
What do you know about Deflation?
What is a hedge fund?
what are the documents/procedure required for hypothecation of stocks
What is Fiscal Deficit?
1 Answers Bank of Baroda, Nabard, SEBI,
What is the capm formula?
Can anybody tell me what questions could be asked in interview at SIDBI? And what areas I need to study while preparing for the same?
What are the three parameters on which car depends?
What are the assets have stopped giving income to a bank.
What is Royalty? And how it is being paid. What is the general terms and conditions for royalty/