Which is an example of equity financing?

2 answers:

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If you're a young entrepreneur who owns your own business or wants to launch one, you have two basic ways to raise money: with debt and with equity. Debt financing means borrowing money. Equity financing means selling a piece of the company. One advantage to equity financing is that you don't have to go into debt. The equity investor becomes an owner just like you rather, than a creditor. If the business fails, he loses his investment and that's the end of it. Of course, if the business is a success, you don't get all the goodies for yourself. The equity investor gets a share, too.

NNADVOKAT [17]1 year ago

4 0

The owner of the company ABC might need to raise a capital to fund a business expansion this is bc equity financing involves selling a portion of a company's equity in return for capital .

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