Equity finance is represented by which of the following?
A)when a firm borrows money from banks
B)when a firm sells bonds
C)when a firm sells shares of stock
D)when a firm draws down retained earnings
E) when a firm sells off part of its capital stock

Question

Quizplus · Accepted Answer

Equity finance refers to raising funds by selling shares of stock to investors. Therefore, option C is the correct choice. Options A and B refer to debt financing, while option D refers to using profits that are already retained in the business. Option E could potentially refer to equity finance if the capital stock sold off is in the form of shares, but it is not a clear or definitive answer.

Equity Finance Is Represented by Which of the Following