It is irrefutable that equity and debt investments are well known in modern culture. I am not wrong if I say equity is much more popular nowadays. However, the question is what these terms are and how we can define them. I don't know what the book says, but I have some opinions.
When we need a solution to any problem, for that business is required. For a business, you need funds to run or start your business. For that, 1) obtain a bank loan (debt). 2) from your father or from anyone else who lends you money (equity). ney (equity). Research suggests that 90% of businesses fail within a year. The question now is why should we go for such a low probability?
We humans have evolved over time, and business adds value to our lives. The problem is that no one knows which business will create value for our society. Even the founder didn't know that he or she would become a billionaire. Therefore, we need to take a risk. Risk is not everyone's cup of tea. I can firmly say that your emergency fund or important money is put into debt funds or banks. Debt funds are made for those who don't have a risk appetite and want a stable life). But those who have surplus money give it to businesses, which takes on new risk for our society (if it doesn't work, then don't lose much, but if it works out, it will create a large value for society). Investments in equities are not bad or risky if you understand your risk appetite, do research, and give time.
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