Series 7 Equity vs Debt Products Chart

Here’s a comparison chart for Equity Products vs Debt Products, highlighting key aspects such as risk, return potential, liquidity, and taxation. This visualization can help you clearly differentiate between these two types of financial products as you prepare for the Series 7 exam.

🎯 Equity vs Debt Products Comparison Chart

• Equity Products: Typically includes stocks, mutual funds, and ETFs. They have higher risk but offer the potential for higher returns. They are generally more liquid, and returns are taxed as capital gains and dividends.
• Debt Products: Includes bonds (such as corporate, municipal, government bonds) and T-bills. These are typically considered lower risk investments, offering fixed returns from interest income. Liquidity can vary, with some bonds being more difficult to sell. Taxation is based on interest income and capital gains.

Let me show you the chart for this comparison!

Series 7: Equity vs Debt Products Comparison

Here is the Equity vs Debt Products Comparison Chart for the Series 7 exam:

• Risk: Equity products have higher risk due to market fluctuations, while debt products are generally considered lower risk (especially government bonds).
• Return Potential: Equity products offer higher return potential (growth from stock price increases), while debt products offer fixed returns (interest).
• Liquidity: Equity products are more liquid, as stocks and mutual funds can be easily traded. Debt products have lower liquidity, especially for certain bonds.
• Taxation: Equity products are taxed on capital gains and dividends, whereas debt products are taxed on interest income and capital gains.

This chart should help you grasp the differences between these two categories of financial products.