characteristics of debt and equity instruments

cl5254clope · #1 Jul 1, 2007, 05:32 PM

Can someone please help me understand the difference between debt and equity instruments?

Aksh · Jul 2, 2007, 10:57 AM

DEBT is an amount of money, goods or services that is owed to someone else and must be repaid.

EQUITY INSTRUMENT is a piece of paper that proves the ownership interest of common and preferred stock holders in a company. The ownership interest is represented by shares reflecting the assets and earnings.



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