Equity financing is money invested in the venture with legal obligations to repay the principal amount of interest or interest rate on it.

Question

Quizplus · Accepted Answer

Equity financing is actually money invested in the venture in exchange for ownership, typically in the form of stocks or shares. There is no legal obligation to repay the principal amount with interest. Instead, investors receive a return on their investment through dividends, capital gains, or sale of their shares.

Equity Financing Is Money Invested in the Venture with Legal