equity financing investment & finance definition
Issuing
stock in order to raise funds. Equity financing may be an initial public
offering, which is the first equity that a company raises. All subsequent
offerings of equity are called secondary, or follow-
on, offerings.
See equity financing in Wall Street Words
The acquisition of funds by issuing shares of common or preferred stock. Firms usually use equity financing when they are unable to raise sufficient funds through retained earnings or when they have to raise additional equity capital to offset debt. Compare
debt financing.
Learn more about equity financing