Debt is a loan that is repaid with interest. Equity is the value of ownership in an enterprise. Debt and equity are two different things. Debt refers to the money that you borrow, whereas equity refers to the value of ownership in an enterprise. In simple terms, debt means borrowing money and paying it back with interest, whereas equity means owning a share of a company and receiving dividends from it.
Debt is a loan that you borrow in order to purchase something. Equity is the ownership stake in a company, the right of an investor to share in the profits of the company. The difference between debt and equity is that debt has an interest rate while equity does not.
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