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What is the difference between debt and equity financing?

April 26, 2017debt equity financing

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What is the difference between debt and equity financing?

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Companies must raise money to finance their ongoing operations. The two basic methods are debt and equity. With debt, money is borrowed under an agreement to repay over a specific time at a specific interest rate. Equity financing is the selling of an ownership stake in the company.

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Posted

Companies must raise money to finance their on going operations. The two basic methods are debt and equity. With debt, money is borrowed under an agreement to repay over a period of time at a specific interest rate. Equity financing is the selling of an ownership stake in the company.