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Sagot :
Through equity financing, stockholders become of the firm Owner.
A shareholder is an individual, company, or institution that owns at least a portion of the company's shares or mutual funds. Shareholders inherently own the company, with certain rights and obligations. This type of ownership allows you to benefit from the company's success.
These rewards come in the form of higher stock valuations or economic benefits paid out as dividends. Conversely, when a company suffers a loss, its share price will inevitably fall, and shareholders may suffer losses or suffer portfolio losses.
Financing is the process of providing funds for a business, purchase, or investment. Financial institutions such as banks provide capital to help businesses, consumers and investors achieve their goals.
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