2019-06-23|閱讀時間 ‧ 約 3 分鐘

Equity Investors vs. Debt Investors

Many people don’t understand what is the difference between Equity Investors and Debt Investors. We would like to briefly explain the differences.

Equity = Investment

For: generate future income, you don’t sell later
Use: running cost, to run operation, ex. employee, marketing, rent
Investors get: company shares, profit(income-expense) of the company (profit is not only expressed as money, but it could also be expressed as cost)
Return on investment: is higher than Debt investor, but the risk is higher as well
Investors’ Risk: company spend too much cost, and they can’t pay back to investors
Investor need: help growth management

Debt = Loan

Please feel free to correct us, if we are wrong. Or if you have any question, please leave your comment, or discuss with us.

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