Consultant Interview Question:

What's the difference between debt and equity finance?

Submitted by: Muhammad

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.
Submitted by: Muhammad