Preferred stock is often described as a stock that acts like a bond. Investors value them for their steady income, not the potential market price increases.

Equity shares are one of the most common ways people invest in the stock market. Many people invest in equity shares in the hope of earning high returns that stocks have historically offered.

but it can also get very complicated. A simple way to look at a company's debt obligations is to examine its equity-to-asset ratio, a measure that can tell you the extent of a company's leverage.