Equity Financing Wiki – Definition of Equity Financing

Equity Financing Wiki – Definition of Equity Financing


Equity Financing Wiki – Definition of Equity Financing
Equity

What is Equity :

In accounting, Equity (or owner’s equity) is the difference between the value of the assets and the value of the liabilities of something owned. It is governed by the following equation:

Equity=assets – liabilities

For example, if someone owns a car worth $15000 (an asset), but owes $5000 on a loan against that car (a liability), the car represents $10000 of equity. Equity can be negative if liabilities exceed assets.

money, coin, investment
nattanan23 (CC0), Pixabay

Equity Financing Wiki :

Equity financing is the process of raising capital through the sale of shares in an enterprise. Equity financing essentially refers to the sale of an ownership interest to raise funds for business purposes.

While the term is generally associated with financing by public companies listed on an exchange, it includes financing by private companies as well.


Equity Financing Wiki – Definition of Equity Financing <