Investors are uncertain about the quality of each company's debt or equity offerings because the ultimate return from the security depends on future events.

Equity Offerings

The sale of equity or shares in a company to raise capital, usually through public offerings or private placements.

Debt Offerings

A way for companies to raise capital by issuing debt securities or bonds to investors, who in return receive interest payments.

Ultimate Return

The total return received from an investment, including all sources of income and capital gains, over the entire holding period.