Entrepreneurs are most likely to give up more equity in their businesses in the <u>startup </u>phase of their companies than in any other.
The practice of obtaining money through the selling of shares is known as equity financing.
Companies raise money because they can need it to pay expenses in the short term or because they have a long-term objective and need money to invest in their expansion.
A firm effectively sells ownership in their business when it sells shares in exchange for money.
Many different forms of equity funding exist, such as an entrepreneur's friends and family, investors, or an initial public offering (IPO).
Private businesses that want to issue new shares of stock to the public must first go through an IPO procedure. A business can raise funds from the general public by issuing public shares.
To learn more about Initial Public Offering (IPO) here
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