What is the difference between the debt and equity markets?

Generally, the equity and debt markets are broad terms used in areas where buying and selling investments. Though the two perform similar services, they differ in the area they operate. For instance, Debt markets, also known as bond markets, operate in areas where loans in investments are sold and bought. The brokers, individual investors, and large institutions handle the transactions. On the other hand, the equity market, also known as the stock market, is where stocks are sold and bought.