Equity Market VS Debt Market<\/p>\n
<\/iframe><\/p>\n<p>Equity Market VS Debt Market<\/p>\n<p>The debt market is the market where debt instruments are traded. Debt instruments are assets that require a fixed payment to the holder, usually with interest. Examples of debt instruments include bonds (government or corporate) and mortgages.<br \/>\nThe equity market (often referred to as the stock market) is the market for trading equity instruments. Stocks are securities that are a claim on the earnings and assets of a corporation (Mishkin 1998). An example of an equity instrument would be common stock shares, such as those traded on the New York Stock Exchange.<br \/>\nHow are debt instruments different from equity instruments?<br \/>\nThere are important differences between stocks and bonds. Let me highlight several of them:<br \/>\n1.\tEquity financing allows a company to acquire funds (often for investment) without incurring debt. On the other hand, issuing a bond does increase the debt burden of the bond issuer because contractual interest payments must be paid\u2014 unlike dividends, they cannot be reduced or suspended.<br \/>\n2.\tThose who purchase equity instruments (stocks) gain ownership of the business whose shares they hold (in other words, they gain the right to vote on the issues important to the firm). In addition, equity holders have claims on the future earnings of the firm.<\/p>\n<p>In contrast, bondholders do not gain ownership in the business or have any claims to the future profits of the borrower. The borrower\u2019s only obligation is to repay the loan with interest.<br \/>\n3.\tBonds are considered to be less risky investments for at least two reasons. First, bond market returns are less volatile than stock market returns. Second, should the company run into trouble, bondholders are paid first, before other expenses are paid. Shareholders are less likely to receive any compensation in this scenario<\/p>\n<p>Equity Market VS Debt Market<\/p>\n<p>www.wealthhunterIndia.com, Call Us Now and get ahead financially: 9717033377, 9910089543<\/p>\n<p>Wealthhunterindia.com is one of the leading financial services provider in India offering range solutions that meet various customer needs through various financial products like Mutual Fund, Insurance, Fixed Deposit, and Loans.<\/p>\n<p>Started in the year 2003, Wealthhunterindia.com is today an established name in the financial service provider market of India.<\/p>\n<p>Call Us Now and get ahead financially: 9717033377, 9910089542<br \/>\nwww.wealthhunterIndia.com <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Equity Market VS Debt Market Equity Market VS Debt Market The debt market is the market where debt instruments are traded. Debt instruments are assets that require a fixed payment to the holder, usually with interest. Examples of debt instruments include bonds (government or corporate) and mortgages. The equity market (often referred to as the…<\/p>\n","protected":false},"author":1,"featured_media":268,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[57,657,656],"tags":[565,567,568,566],"class_list":["entry","author-admin","post-950","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-miscellaneous","category-debt-fund","category-equity-fund","tag-all-about-equity-debt-market","tag-debt-vs-equity-funds-whats-the-real-difference","tag-how-debt-mutual-funds-work","tag-what-is-the-difference-between-debt-and-equity-financing"],"_links":{"self":[{"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/posts\/950","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/comments?post=950"}],"version-history":[{"count":6,"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/posts\/950\/revisions"}],"predecessor-version":[{"id":2439,"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/posts\/950\/revisions\/2439"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/media\/268"}],"wp:attachment":[{"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/media?parent=950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/categories?post=950"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/tags?post=950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}