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.
Investopedia Commentary
This is when a company raises money by issuing stock. The other way to raise money is debt financing, which is when the company borrows money.
Related Links
IPO Basics Tutorial
Stock Basics Tutorial
See also: Debt Financing, Equity, Financing, IPO, Paid in Capital
equity financing