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equity financing definition​

Sagot :

Equity financing is a means of obtaining new cash by selling firm shares to public, institutional, or financial entities.

Since they have earned ownership stake in the corporation, persons who buy shares are referred to as shareholders.

Equity finance is a means of acquiring capital to address an organization's liquidity needs by selling a company's equity in return for cash. The promoter's ownership in the firm would decide the percentage of the interest.

Apart from public offerings, one of the most popular ways to get funds is through venture capital. Venture Capital (VC) funding is a means of acquiring funds through high-net-worth people interested in a variety of investment options.

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