Question

What are debt and equity share capital and mazor diffrence between them

Answer 1

debt means a sum of money that is owed or due and equity share capital means Invested money that, in contrast to debt capital, is not repaid to the investors in the normal course of business. It represents the risk capital staked by the owners through purchase of a company's common stock(ordinary shares)

The major difference between debt and capital is debt is money which owns from others and capital is collected from share holder

the debt holder is creditor and share holder is owners of a company.

the debt is temporary in nature and share capital is permenant is nature.

the debt holder take any mortgage on his money but share holder not take any asset as mortgage.

debt holder take certificate on their debt share holder take share certificate.

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