A form of debt or equity that possesses characteristics of both debt and equity financing is called:________

1 answer:

5 0

A form of debt or equity that possesses characteristics of both debt and equity financing is called hybrid security.

Debt financing means borrowing money from an external source and promising to repay it with interest by a specified future date. Equity financing means that someone donates money or assets to a company in exchange for a percentage of ownership. Each has its pros and cons, depending on your needs.

Debt financing involves borrowing money, while equity financing involves selling some of the company's shares. The main advantage of equity financing is that there is no obligation to repay the acquired funds.

The main difference between debt and equity financing is that debt financing occurs when a company raises capital by selling debt instruments to investors. In equity financing, on the other hand, a company raises capital by going public.

Learn more about hybrid security here brainly.com/question/17178041

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