Answer:
Consider developing your company idea with your own money. To continue expanding, you now need more funding. You could use an equity financing strategy at this point.
Raising money through the sale of shares is the process of equity financing. Companies raise money because they may need it for a short-term expense like paying bills or for a long-term objective like investing company in growth. A company that sells shares effectively transfers control of the business in exchange for money.
Equity funding can originate from a variety of sources, such as an company entrepreneur's friends and family, investors, or an IPO (IPO). Private businesses that want to sell shares of their company to the general equity financing public must go through an initial public offering (IPO). A business can raise money from the general public by issuing shares to the public. Industry behemoths raised billions of dollars through IPOs.
Step-by-step explanation: