What is the difference between equity and debt?

[Good-Person]

Equity and debts are two of the most commonly discussed things when we discuss about finance. Equity may seem a bit similar to debt. However, it is quite different,. When the investors buy shares and own equity in your company, your ownership may get affected in a bad manner. So, how does it differ from debts?

 

[Debashis]

Equity represents ownership in a company, giving shareholders a stake and the potential for profit through dividends or capital appreciation. Debt, on the other hand, is borrowed money that must be repaid with interest, typically through fixed payments over a defined period.

 

[Kane]

Equity is your assets where as debt is your liability. Equity is everything under your ownership, it could be your investment, your properties, savings, etc. where as debt is your payable amount. It could be your bills, your outstanding loans, etc. When your equity is higher than your debt, you are financially strong, where as when debt is higher than your equity, you are financially shaken.

 

[Ja sa bong]

Equity is the opposite of debt. Equity is the assets of your business in the properties, funds, investments, machineries, employees and etc while debts are the expenses the business pays to manage the business day's activities.

 

[Gilead]

Equity is more or less your own particular share from a property in any kind of form. while debt is a liability that you have to pay for. equity is for income while debt is expense or liability.

 

[Ektalakra]

Equity represents ownership in a company, acquired through the purchase of shares, and implies sharing profits and decision-making. Debt involves borrowing money with an obligation to repay, but it doesn't dilute ownership; interest is paid instead.