ECONOMICS

Detailed explanation-1: -Equity financing is the process of raising capital through the sale of shares. Companies raise money because they might have a short-term need to pay bills or need funds for a long-term project that promotes growth.

Detailed explanation-2: -Debt capital is funding that a company raises by borrowing money from lenders through loans or corporate bond offerings. Equity capital is cash that a public company raises or earns by issuing new shares to shareholders on the market.

Detailed explanation-3: -Equity financing is when you raise money by selling shares in your business, either to your existing shareholders or to a new investor. This doesn’t mean you must surrender control of your business, as your investor can take a minority stake.

Detailed explanation-4: -Definition: Equity finance is a method of raising fresh capital by selling shares of the company to public, institutional investors, or financial institutions.

Detailed explanation-5: -Less burden. With equity financing, there is no loan to repay. The business doesn’t have to make a monthly loan payment which can be particularly important if the business doesn’t initially generate a profit. This in turn, gives you the freedom to channel more money into your growing business.