EQUITY FINANCING

Process of raising capital by selling company shares to investors. In essence, it pertains to the selling an ownership interest to generate funds for business purposes. It has a broad range of activities, from few thousand dollars an entrepreneur raised from friends and family, to huge initial public offerings (IPOs) running into billions by household names including Google and Facebook. While this is generally connected to fundings by public firms listed on an exchange, it also entails fundings by private firms.