Explain Like I'm Five: Debt & Equity
"Debt" and "equity" are strangely loaded terms for mostly boring concepts. For our purposes today, both are methods to raise money for an ostensibly productive purpose, like a business.
As with most of my ideas, someone else has already done this more succinctly than I ever could have. From the July 27th Money Stuff email by Matt Levine:
Debt and equity are two methods to raise money for a company, and consequently, two methods to invest as well. The difference is important!
Lastly, some free association of terms that tend to go in one camp or another: