Understanding Debt and Equity Capital for Financial Markets

The video explores the differences between debt and equity capital as methods of raising finance. Debt capital involves borrowing money with the obligation to repay with interest, while equity capital involves selling ownership stakes in exchange for funds. The video discusses the roles of borrowers and lenders, the concept of interest, and the implications of using debt and equity. It emphasizes the importance of balancing these two forms of capital to maintain financial stability and optimize investment portfolios.

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