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Debt, credit & capital structure · Core

Equity financing

Also called: equity funding

ELI5

Raising capital by issuing ownership interests.

Used in conversation

“Can you walk me through how equity financing works in the model?”

Pitch context

You will see “Equity financing” in financial models, budgets, board packs and investor materials when the discussion reaches debt, credit & capital structure.

Why it matters: In debt, credit & capital structure, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

When the words have to travel

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Sources & evidence · 9

Direct term-level sources and supporting source families.