What is the difference between debt and equity?

Answer Posted / purvi

debts are the loans having fixed return irrespective of
companys health whereas eqiuty returns depend on companys
health
debts are close ended and equity are open ended or both
debts are given first preference on repayment during
bankruptcy whereas equity are given second.

Is This Answer Correct ?    1 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

What are the different types of 'Fixed Deposits'?

690


What Are The Types Of Accounts In Banks?

547


What is FDI and FII? Can you differentiate between the two?

657


What are some of the objectives of LIC?

643


What Is Cp?

629






How can the inflation be measured?

663


Full form of SIDBI? Does it play any role in removing unemployment?

650


What are NPA? How can they be reduced?

620


Recently what award has been given to SBI?

710


What is the between Balance of Trade and Balance of Payments?

660


How Is The Single Supervisory Mechanism Organised?

778


What Is Start-up Loans?

647


what is the role of RM? service banker?

2206


What type of insurance policies are there?

628


What Is Non-traditional Options?

631