Equity Financing

Raising money by issuing ownership shares, giving an investor a claim on future profits and a voice in decisions.

Nothing is repaid because nothing was borrowed. The price is a permanent share of profit and a permanent share of control.

Often confused with

Debt Financing: Debt is repaid and then ends; equity is never repaid and never ends.

Taught in

3.5 Financial Capital

See also

3.5.B.1 · 3.5.B.1.ii