Final answer:
Precise Filters raising capital by selling shares to the public is described as equity financing. It involves selling ownership interests to investors, who then may influence company decisions.
Step-by-step explanation:
Precise Filters, by selling stock to the public, engages in a process known as equity financing. This is a method of raising capital by selling company shares to investors. In return for their investment, shareholders receive ownership interests in the company.
The primary advantage of equity financing is that, unlike debt financing, the company does not commit to scheduled repayments with interest. However, it does require giving up a certain degree of control, as shareholders will have a say in company decisions through a board of directors.