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What do you feel is more advantages; debt or equity securities?

What do you feel is more advantages; debt or equity securities?

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Answer #1

According to me, equity securities has more advantages. Reasons are as below-

1. Investment in equity securities gives participation in ownership. This is not in the case of debt.

2. Equity is more profitable for long term.

3. Equity securities does not leads to outflow of cash , that is interst payment and principal payment. Thus, leading to retention of profits more in the entity.

4. There is no risk of attachment or seizure of any asset or property by any outside entity (like creditor) if the share prices fluctuates.

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