One of the reasons why the debt market is much larger than the equity market is because debt issuances mature periodically, unlike equity issuances.

Question

Quizplus · Accepted Answer

Debt issuances have a set maturity date and must be repaid, whereas equity does not have a maturity date and represents an ownership stake in a company. Therefore, debt issuances can be issued and mature periodically, leading to a larger debt market compared to the equity market.

One of the Reasons Why the Debt Market Is Much