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Equity Financing

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Dictionary Says

Definition of 'Equity Financing'

The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation.

Also known as "share capital".
Investopedia Says

Investopedia explains 'Equity Financing'

This is when a company raises money by issuing stock. The other way to raise money is through debt financing, which is when the company borrows money.

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