Which option represents a form of equity financing?

Multiple choice question for Stocks. Select an option, then review the explanation below.

Explanation

Equity finance involves raising capital through the sale of company shares (stocks). Corporate bonds and government bonds are debt instruments, not equity. Therefore, company shares are the correct example of equity financing.

Practice related questions from the same subject.

1.What is the effect of an increase in the budget surplus on the market for loanable funds?
2.What happens to real interest rates and investment if Pakistani citizens become less future-oriented and reduce their savings at every real interest rate?
3.What effect does a rise in the budget deficit have on public savings?
4.What is the effect of a larger budget deficit on the real interest rate and the demand for loanable funds used for investment?
5.Which combination of government policies is most effective in promoting economic growth?

Which option represents a form of equity financing?

Explanation

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