Respuesta :
Funds for equity financing are generated by the owners of the company rather than an outside lender. These funds might come from the company's own savings or partial sale of ownership in the company in the form of stock.
Equity financing is the process of raising capital through the sale of shares.
Companies raise money because they might have a short-term need to pay bills or have a long-term goal and require funds to invest in their growth.
What are examples of equity financing?
Equity financing involves selling a portion of a company's equity in return for capital. For example, the owner of Company ABC might need to raise capital to fund business expansion. The owner decides to give up 10% of ownership in the company and sell it to an investor in return for capital.
Learn more about equity financing here:
