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...

Answer / ravi

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

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