Debt or Equity - which is better?

[Nova]

Most of the people who invest into the stock and shares and mutual funds. They find that there are some really good options out there. Like say when you want to work around with your stocks and shares I guess you should be investing wisely too. I personally prefer the debt and the equity in equal amounts too. It works out for me in terms of the balancing of the portfolio.

In between the equity and the debt, what do you choose?

 

[Oliver 20]

Equity financing alludes to reserves created by the offer of stock. The fundamental advantage of value financing is that supports need not be reimbursed Since equity financing is a more serious danger to the speculator than debt financing is to the bank, the expense of value is frequently higher than the expense of debt.

 

[Suba]

Debt is a liability that must be paid, while equity is ownership. The risk for shareholders will be greater than the lender, if the company goes bankrupt, the equity will be lost while the debt is still to be paid, Debt will only generate interest, while equity will get dividends from profit sharing, Debt is fixed, while the equity price fluctuates. Debt to Equity Ratio If the ratio is high, it will be more risky and more profitable, but if the ratio is low, it is less risky but the cost of return is lower. Of course, more people will choose equity to invest.

 

[Alexandoy]

To be frank, I don't understand about debt versus equity. My understanding of debt is money that you borrowed which you have to pay back. With equity that is the value of your asset that can be in cash or in kind. Now if what you mean is that I would be buying stocks on credit that I will incur a debt then I don't think that is a good investment. For me, investment is the money that you have right now that you want to put in something profitable. That is called investment. When you borrow money to buy stocks then that is gambling.

 

[Chris]

The main benefit of equity financing is that funds need not be repaid. However, equity financing is not the "no-strings-attached" solution it may seem. ... Since equity financing is a greater risk to the investor than debt financing is to the lender, the cost of equity is often higher than the cost of debt.
Investments in debt securities typically involve less risk than equity investments and offer a lower potential return on investment.

 

[Debola]

Most of the people who invest into the stock and shares and mutual funds. They find that there are some really good options out there. Like say when you want to work around with your stocks and shares I guess you should be investing wisely too. I personally prefer the debt and the equity in equal amounts too. It works out for me in terms of the balancing of the portfolio.

In between the equity and the debt, what do you choose?

Equity financing refers to funds generated by the sale of stock. The main benefit of equity financing is that funds need not be repaid. ... Since equity financing is a greater risk to the investor than debt financing is to the lender, the cost of equity is often higher than the cost of debt.

 

[Mawome]

Well debt is a national issue, and the issue can never be overemphasized, any body who borrows money is borrowing because he doesn't have, becouse if you have, you don't borrow. even the federal government sometimes borrows money, so I think it's an issue that concerns all.

 

[Bousine123]

Can't really place a finger on the question you are asking or the point you are trying to make. Debt I know In the stock market is buying and then paying back later.

 

[Snazzy001]

These things work this on what's the person is looking out for. If balancing of the portfolio is what I am also looking out for, equity and debt should be what I want too

 

[Nurudeen]

I really don't know much about the debt and equity market. I will make more research about it right away and come back here to give you what I saw about both terminologies in the market

 

[Hojo]

Debt is lost , equity is income , I prefer equity , who will even prefer debt when we all want equity.. unless it's margin in which it will surely profit

 

[Heatman]

Seriously, there is no way I'm going to be very comfortable with being indebted to anyone which is why I'm not going to be comfortable with being in debt so I'm going to try as much as I can to always have money to take care of my expenses all the time.

 

[Kvngsammy]

I think I'll quite agree with you on the equities part - that aspect deals with the fact that investment is spread over a wider range of assets instead of a more streamlined means of investment.

 

[tyrim88]

I think that the issue of equity is that in the market or investment portfolio,there are dividence to be gotten from equity holding,though when there is liquidity,all is lost,while debt is on the other hand keep increasing.

 

[MaxMass]

Since Debt is almost always cheaper than Equity, Debt is almost always the answer and risk potential returns of Debt are both lower.

 

[frederick_9]

Equity financing makes reference to the reserves produced by the stock offering.
The primary benefit of value financing is that there is no requirement for support reimbursement.
The cost of value is typically higher than the cost of debt because equity financing poses a greater risk to the speculator than debt
The problem with stock, in my opinion, is that it can produce dividends in the market or investment portfolio, but when there is liquidity, all is gone, while debt, on the other hand, keeps rising.

 

[Kane]

I like equity because it is an asset, debt is a liability and I do not want to invest in a liability. When investing in equity, I also try to choose the one that will be profitable over time instead of a sudden rise.