Equity funding in economics and finance

Hello, dear learners! Today, we embark on an exciting journey into the realm of economics and finance. Our focus? Equity funding. But what exactly is equity funding? In simple terms, it refers to the process of raising capital by selling shares of ownership in a company. Unlike debt financing, where borrowed money is to be repaid, equity funding involves sharing the ownership and profits. This unique characteristic makes it a crucial aspect of the financial landscape, with wide-ranging implications.