Public and Private Equity Financing

Public equity financing involves raising capital by selling shares of a company to the general public through stock exchanges. Investors buy these shares, becoming partial owners and sharing in the company’s profits or losses. Private equity financing refers to investment in privately held companies, often through pooled funds. Investors provide capital to these companies, typically in exchange for ownership stakes, without selling shares to the public. Private equity often aims for high returns over time, sometimes through operational improvements or eventual sale or public offering of the business. Both methods are crucial for funding business growth.