An investor might prefer to invest in the equity of a company
rather than its debt because-
- You are a part owner of the
company if you own the equity of that company. Owning debt does not
give any ownership.
- Equity ownership comes with voting
rights it gives you the privilege to be a part of
the decision making of the company. That owners do not have any
- Equity owners have unlimited
growth opportunity. All the money that is left
after paying that it it is the profit for equity owners. That is
only paid a percentage interest rate.
- A shareholder can take advantage of rights issue and bonus
shares. A debt holder does not get this opportunity.
Do let me know in the comment section in case of any