The raising of funds by selling stocks to the public is called
Question 1 Report
The raising of funds by selling stocks to the public is called
Answer Details
Equity financing is the raising of funds by a company through the sale of stocks to the public. This means that the company offers ownership shares to investors in exchange for capital. In other words, the company is selling a portion of its ownership in exchange for money. As a result, the investors become shareholders in the company, and they may receive dividends and have the right to vote on certain issues related to the company's operations. The term "equity" refers to the value of the company that is owned by shareholders, which is also known as shareholders' equity or owner's equity.
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