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When a company issues and sells new stock or uses retained earnings to meet its financial needs, it is using _____.

User Akniazi
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Answer:

Equity financing

Step-by-step explanation:

Equity financing is a means of raising capital by selling shares or by utilizing a company's internal resources. An organization can raise capital either by equity financing or debt financing. Debt financing is when a can borrows funds to finance its operations.

Retained earnings are profits that a company has not distributed to its shareholders. They are a part of business earnings. Essentially , retained earning belong to the shareholders. When a business uses retained earnings to meet its financial needs, it is using the shareholder's resources. It is a form of equity financing.

User Andrei Lesnitsky
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