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What is equity financing?
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28th Oct 2009 by Gary
Equity financing is when you issue stock or offer a piece of the company to someone investing money in the company. The benefit of equity financing is you don't have to pay interest or monthly payments as you would have to when financing via debt. Equity financing means someone owns a piece of the company with you, while debt financing only offers an interest rate of some sort in return for use of the money.
Equity financing offers the investor a higher rate of return on their money, along with higher risk that comes with that potential.
Equity financing is when you issue stock or offer a piece of the company to someone investing money in the company. The benefit of equity financing is you don't have to pay interest or monthly payments as you would have to when financing via debt. Equity financing means someone owns a piece of the company with you, while debt financing only offers an interest rate of some sort in return for use of the money.
Equity financing offers the investor a higher rate of return on their money, along with higher risk that comes with that potential.
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26th Oct 2009 In Finance
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