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Debt vs. Equity

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  • Debt vs. Equity

    What is the difference between debt and equity and what are some examples of these two principles?

  • #2
    https://bondstreet.com/understanding...ity-financing/

    I just started this chapter in accounting and my prof recommended us this article, So I'm passing it along to you. Good luck!

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    • #3
      When you think of debt financing you think of bonds, for equity it's things like common stock and preferred stock. Debt has a higher priority on repayment, investors aren't technically owed anything when they own stock in a company

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      • #4
        Debt in accounting involves a payable or receivable note, equity is the exchange of cash for common or preferred stock. You can receive dividends on equity and stock, and interest payments on debt. There are pros and cons to each

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