equity capital markets

Equity capital markets are platforms where companies raise money by selling ownership shares, called stocks, to investors. This process typically occurs through an initial public offering (IPO), when a company first goes public, or through additional share sales. These markets connect companies seeking funds with investors looking for opportunities to invest in businesses and share in their growth. Essentially, equity capital markets facilitate the transfer of ownership stakes, helping companies finance expansion, pay debts, or improve their financial health while providing investors with potential returns through share ownership.