Jim Lightsey sold stock to investors in order to finance his company, which will run an Internet auction for sports memorabilia. Lightsey used which type of financing?

Question

Quizplus · Accepted Answer

Selling stock to investors is a common way to raise equity financing, which means that investors are buying shares of ownership in the company. This is different from debt financing, where the company borrows money and must pay it back with interest. Venture financing typically refers to equity financing provided by a venture capital firm or angel investor, and liquid financing is not a common term in finance.

Jim Lightsey Sold Stock to Investors in Order to Finance