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When a company needs to raise funds for a new project, it can issue debt securities such as bonds or loans. These securities come with a fixed interest rate and a specified maturity date, making them a predictable source of financing. On the other hand, equity securities, which include stocks and shares, offer ownership in the company and potential for dividends. However, they also come with the risk of fluctuating returns.
The decision to issue debt or equity securities depends on various factors such as the financial stability of the company, the current market conditions, and the