ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The stock market is a component of a free-market economy. It allows companies to raise money by offering stock shares and corporate bonds and allows investors to participate in the financial achievements of the companies, make profits through capital gains, and earn income through dividends.

Detailed explanation-2: -Equity raising is the exchange of a percentage of business ownership in return for capital (or funds). Examples of equity raising include investment from venture capital firms, angel investors, or anyone else to whom a business owner sells their shares.

Detailed explanation-3: -Equity capital is generated through the sale of shares of company stock rather than through borrowing. If taking on more debt is not financially viable, a company can raise capital by selling additional shares. These can be either common shares or preferred shares.

Detailed explanation-4: -Equity Capital A company can raise capital by selling off ownership stakes in the form of shares to investors who become stockholders. This is known as equity funding.

Detailed explanation-5: -An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance for the first time. An IPO allows a company to raise equity capital from public investors.