In turn, the
buyer receives a share of ownership, and the company gets cash to grow his business or to pay off
debt, Equity securities
generally pay off steady dividends, to the
buyer, but do fluctuate in their market value depending on the ups and downs of the market and the economic situation.
A
buyer which can show a strong credit score, for example, or deep reserves can
generally get approved with
debt ratios in excess of the recommended limits.