Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)

Abstract

Equity financing 101: how companies raise capital through equity

Author(s): Mulugeta Desta

Equity financing is a common method for companies to raise capital by selling shares of ownership to investors. This article provides an overview of equity financing, covering its mechanics, types, and benefits for companies looking to expand or fund operations. By examining different sources of equity financing—such as venture capital, angel investors, and public offerings—this article highlights the strategic advantages and potential risks associated with equity financing. For startups and established companies alike, understanding equity financing options is essential for making informed financial decisions that align with long-term growth objectives

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