Question

Theme Park Thrillers has plans to build a new $175 million theme park and intends to finance this project through the sale of additional shares of ownership in their firm. Selling new shares of stock represents ___________ financing.

(1) retained(2) debt(3) equity(4) initial offering

Answer 1

The correct option is option 3,equity financing

Step-by-step explanation:

Equity financing is a form of company financing means through which required funding is raised through the sale of shares to current or would be investors.

When shares are issued exclusively to existing shareholders it is known as rights issue.

Besides,when the company issues shares to the public for the first time,it is termed initial public offer(IPO),as the name implies the first time the company is raising equity funding from the stock market.