You need to understand the fundamental difference between debt and equity.
A creditor gets his money back with interest, and that's all. The firm could prosper or flail and it makes no difference as long as they pay him back. If the firm goes bankrupt, he's first in line for what's left of it.
A stockholder might get nothing back, but if the firm prospers, he shares in it. He's last in line in a bankruptcy.
You need to understand the fundamental difference between debt and equity.
A creditor gets his money back with interest, and that's all. The firm could prosper or flail and it makes no difference as long as they pay him back. If the firm goes bankrupt, he's first in line for what's left of it.
A stockholder might get nothing back, but if the firm prospers, he shares in it. He's last in line in a bankruptcy.