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What is the difference between debt and equity?
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Answer Posted / 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...
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