Equity Financing: Meaning, how it works and more (www.makemoney.ng)

The investor can also sell, or trade the share in whatever way that he pleases, as the shares act as a private property of the investor.

Equity financing is a vital topic in the world of finance as it relates to the offering of a companys shares to its shareholders in exchange for investment in the company.

Such a share entitles the investor to certain rights and responsibilities to the company.

The share of a business offers an ownership stake of that entity to an investor.

Keypoints

• What is equity financing
• How equity financing works
• Types of equity financing
• Pros of equity financing
• Cons of equity financing
• Conclusion
• Frequently Asked Questions
  • 1. Private equity financing
  • 2. Public equity financing