A company that is required to raise equity capital to continue to operate as a going concern is most likely doing so to purchase long-lived assets. debt-free capital, such as stock or surplus earnings. especially:
funds acquired in exchange for a stake in a company's ownership. Any money raised through the sale of shares is referred to as equity capital, with the fundamental distinction being whether the shares are sold privately or publicly: Private: Stock in a corporation that is held by a small group of investors. Equity capital is produced through the sale of firm assets rather than borrowing money. If it is not financially possible for a company to take on more debt, it can raise money by selling additional shares.
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