You often hear the saying: "Equity is voting with your hands, debt is voting with your feet." At first glance, you can feel that the two have completely different logics.

What does equity really mean? It represents your ownership in a company. As a shareholder, you can speak and vote at the shareholders' meeting, participate in major company decisions—like directly steering the company's direction with your hands. When the company makes a profit, you have the right to dividends. If the company plans a major move, you can also voice your opinion. It sounds like a lot of power, but the price is that risks come along with it. Returns can fluctuate greatly, and no one can predict the future.

Debt is different. You lend money to a company and become a creditor, but you generally do not participate in daily management. From another perspective, it's like entrusting your money to someone else to earn, and you just wait to receive interest on time. If the company doesn't perform well, creditors will "vote with their feet"—they will choose to recover their funds and stop supporting it. This kind of option is more like an exit mechanism.

From a risk perspective, debt is relatively more stable. Fixed interest, paid on schedule, giving peace of mind. Moreover, when a company faces financial difficulties, creditors have priority in repayment during liquidation. Equity, on the other hand, is different; during liquidation, shareholders often have to queue and sometimes lose everything.

Both investment methods have their own logic. If you want control and a sense of participation, choose equity. If you want stable returns and relative safety, debt is a more ideal choice.