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The raising of funds by selling stocks to the public is called?


Question

The raising of funds by selling stocks to the public is called?

Options

A)
equity financing
B)
stock financing
C)
debt financing
D)
loan financing

The correct answer is A.

Explanation:

Equity financing is the process of raising capital through the sale of shares. ... By selling shares, they sell ownership in their company in return for cash, like stock financing. Equity financing comes from many sources; for example, an entrepreneur's friends and family, investors, or an initial public offering (IPO).

Explanation provided by Sylvanus Ufia Inyang


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Dicussion (1)

  • Equity financing is the process of raising capital through the sale of shares. ... By selling shares, they sell ownership in their company in return for cash, like stock financing. Equity financing comes from many sources; for example, an entrepreneur's friends and family, investors, or an initial public offering (IPO).

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