Equity is an ownership stake in a company, including an ownership of future profits. In some sense a company is promising in the future to return profits to sh

Equity is an ownership stake in a company, including an ownership of future profits. In some sense a company is promising in the future to return profits to shareholders. While the company is in a growth stage and healthy, that need to return profits to shareholders is put off indefinitely. When a company is healthy but not growing, they are expected to return those profits to shareholders (the debt comes due). I agree that it is a shaky metaphor, but the idea that equity/debt is a promise to return money to the holder eventually can allow you to put them in the same bucket if you squint.