Capital structure

Capital structure is a way of describing the different types of money that a company uses, like debt, equity, and others. Debt is money that a company has borrowed and needs to pay back, like when you borrow money from a bank. Equity is money that comes from people investing in the company, like when you buy stock in a company. Companies usually try to find a mix of debt and equity that is best for them, as it helps them raise money, provide a return on investments, and provide stability.