Bonds are very similar to equity. I've just recently realized this. Companies get funding from two sources, equity and debt. The sum of those are equal to asse

Bonds are very similar to equity. I've just recently realized this. Companies get funding from two sources, equity and debt. The sum of those are equal to assets in the balance sheet. Both represent different forms of ownership of the company. Equity holders decide how the company is managed, debt holders have priority in income distribution and in liquidation.