The raising of funds by selling stocks to the public is called?

Assessment: JAMB UTME - Economics - 2001 Subject: Economics

Question 1 Report

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.
Read lesson note on Banking (JAMB)
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