Equity Financing
Raising money by issuing ownership shares, giving an investor a claim on future profits and a voice in decisions.
Nothing is repaid because nothing was borrowed. The price is a permanent share of profit and a permanent share of control.
Often Confused With
- Debt Financing
- Debt is repaid and then ends; equity is never repaid and never ends.
Taught In
See Also
3.5.B.1 · 3.5.B.1.ii