Definition
Equity capital refers to funds raised by a company through the sale of stock or ownership shares. It represents the investment made by shareholders into the company.
Related Services
Capital raising, venture capital, and equity advisory services assist businesses in securing equity capital for expansion.
Problem and Application
While equity capital provides long-term funding without the burden of debt, it dilutes ownership, which can be a concern for existing shareholders.
Conclusion
Equity capital is an essential source of funding for growth but involves sharing ownership and decision-making power with investors.
