1. STEVEN GUYNN: THE BASIC DIFFERENCES
BETWEEN DEBT AND EQUITY MARKETS

2. Possessing decades of professional experience, Steven
Guynn has served as a partner and attorney at several
global law firms. He focuses on public and private
mergers, sovereign wealth fund investments, and debt
and equity capital markets transactions.
In the debt market, individuals trade debt instruments
such as bonds and mortgages. In the equity market,
usually called the stock market, individuals trade
securities that guarantee a portion of the earnings and
assets to the holder. The bond and stock markets, while
both important aspects of investing, have a number of key
differences that both investors and corporations must
consider.

3.  Through equity financing, corporations can raise
funds without actually incurring debt. On the other
hand, the individuals who purchase a corporation’s
stock gain partial ownership and may have the right
to vote on issues facing the company. Individuals with
equity also have a claim to a portion of future
earnings.
Issuing bonds increases the debt of a company, as
the bond issuer has a contractual obligation to repay
the loan, and usually with interest. But bondholders
have no claim to future earnings of the company and
no voice in important decisions.