Equity financing can be from friends and family

Equity Financing refers to the sales of company shares in order to raise capital for the business. Investor who purchases the share are also purchasing the right to the company. Equity financing raises capital by selling shares. Private and public companies raise money for short-term needs to pay bills or for long-term projects as a result of selling ownership of their company for cash. Equity financing can be from friends and family, professional investors, or an initial public offering. In equity financing, a firm sells equity instruments, which include preferred stock, convertible preferred stock, and equity units consisting of common shares and warrants. In such cases, it can have a bearing on the position of the existing shareholders, and communication with new shareholders can be challenging.https://finxl.in/financial-planning-and-analysis-online-classes-courses-training.html