Through equity financing, stockholders become ________ of the firm.

Name: Through equity financing, stockholders become ________ of the firm.
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Question

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Equity financing involves selling ownership shares of the company to investors or stockholders. Therefore, those who purchase these shares become owners or stakeholders of the firm. They may receive dividends and have voting rights in company decisions, but they are not creditors, employees, or suppliers.

Through Equity Financing, Stockholders Become ________ of the Firm