Monday, July 28, 2008

Debt Securities x Equity Securities

Generally, a corporation receiver capital in exchange of equity securities or debt securities or a combination of the two.
Debt securities evidence a loan to the corporation, in other words, it occurs when a corporation borrows funds from outside investors, who have no ownership interest in the corporation. 
In contrast, equity securities confer to their holders an ownership interest in the issuing corporation.

No comments: