Financing by selling common stock or preferred stock to investors.
Selling an interest in your business to an outside party to raise money. Equity financing does not have to be repaid like a loan. Investors participate in the company's profits and/or its appreciation in value based on their level of ownership. Equity financing often involves giving the outside party some level of control over business operations. [go back to glossary list
mode of financing in which financiers provide funds in return for partial ownership of a company (equity), and expect profit or return on their equity. In contrast to debt financing.