Suppose you want to start your own business and you don't have enough money to buy land,pay salaries to your employees,buy necessary equipment etc. then there you need some methods to arrange money to help your purpose.
Lets' talk of two such methods :
1)Debt : You take money and promise to pay some some interest monthly/yearly/quarterly and then you have to return that amount after an agreed period of time.e.g. Bonds,Bank Loan etc
2) Equity : You can take some money and in return you offer ownership in your business.Here comes the idea of Equity.
