Jagran Josh Logo
  1. Home
  2. |  
  3. Bank Recruitment|  

Make a comparison between equity and debt?

Oct 10, 2015 10:26 IST

     

    Debt
    Equity
    a. It refers to the amount of money, property or service which belongs to someone else. It refers to the value of assets after excluding  all debts and liabilities.

    b. There are following types of Debt.
    i. Secured debt
    ii. Unsecured Debt
    iii. Public/Private Debt
    iv. Loans
    v. Bonds

    Whereas, Contributed capital, Gained Capital and Revenue are the basic types of Equity.

     

     

    c. It is calculated as,

    Debt=Amount Owned- Value of assets

    Whereas,

    Equity=Value of assets- Amount Owned

    d. It is used for purchasing assets that are more valuable than the party’s ability to purchase them.It can be used for Equity trading or other benefits Of the companies. It is used in the estimation of potential gain in any asset transaction for purchasing power. It also can be used for Debt and other benefits of the companies.
    e. For Example: - Balance in credit card.Whenever, user owed money from the bank.Then, he is bound to pay it under a fixed duration of time. If he is not able to do so,then credit card company will charge interest on the withdrawal money.

    The value of Home after paying off all mortgages in full.

     

     

    DISCLAIMER: JPL and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.

    Tags

    Latest Videos

    Register to get FREE updates

      All Fields Mandatory
    • (Ex:9123456789)
    • Please Select Your Interest
    • Please specify

    • ajax-loader
    • A verifcation code has been sent to
      your mobile number

      Please enter the verification code below

    Newsletter Signup
    Follow us on
    This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK
    X

    Register to view Complete PDF