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What is the difference between debt and equity?
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Answer Posted / shruti
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 ? | 52 Yes | 7 No |
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