Equity financing

Equity financing is all about raising funds by selling shares of a company. The company gets money in return for some ownership, and the new equity holder becomes part-owner, which lets them gain from future dividends and cash flows, or to sell their shares when they want. Equity financing can mean a lot of different things in practice. There are different kinds of equity too. You got preferred stock, convertible preferred stock, common shares, and even warrants. So, depending on where the company stands and who it's talking to, the equity financing can turn out differently.