MANAGEMENT

Detailed explanation-1: -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-2: -An angel investor is a person or company that provides capital for start-up businesses in exchange for ownership equity or convertible debt.

Detailed explanation-3: -The capital, which is raised in exchange for the share of ownership in the company, is called equity capital.

Detailed explanation-4: -Share. When companies sell shares to investors to raise capital, it is called equity financing. The benefit of equity financing to a business is that the money received doesn’t have to be repaid. If the company fails, the funds raised aren’t returned to shareholders.