Final answer:
Equity share issuance is popular because it brings in capital without the obligation of repayment and increases visibility in financial markets, even though it involves sharing company ownership and profits.
Step-by-step explanation:
Issuing equity share is considered as the most popular source of capital for a business because it does not require repayment of principal, unlike debt financing. When a company issues equity, it is selling off a part of its ownership to the public, which in turn becomes responsible to a board of directors and the shareholders. One of the main benefits of issuing stock is that it allows the firm to access large amounts of financial capital for expansion without the burden of repaying the capital. Moreover, it enables the firm to increase its visibility in the financial markets. However, equity financing also means sharing ownership and profits and complying with reporting requirements to shareholders and government agencies, such as the Securities and Exchange Commission (SEC).