The raising of funds by selling stocks to the public is called?
Answer Details
The raising of funds by selling stocks to the public is called equity financing. This is a process where a company issues stocks to the public, which represents ownership in the company. Investors who purchase these stocks become shareholders and are entitled to a share of the company's profits in the form of dividends. Equity financing is a common way for companies to raise capital without incurring debt. It can also provide benefits such as increased publicity and credibility for the company.