Consultant Question:
What's the difference between debt and equity finance?
Answer:
Debt and equity finance are the two main ways by which a business can raise money.
Equity finance means raising money by selling shares - that is, stakes in the company - either privately to investors or on the stock markets. Debt finance means raising money through taking out loans or by issuing bonds - pieces of tradeable debt - on the markets.
Equity finance means raising money by selling shares - that is, stakes in the company - either privately to investors or on the stock markets. Debt finance means raising money through taking out loans or by issuing bonds - pieces of tradeable debt - on the markets.
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