5 Questions
Raising equity capital is a way for companies to finance growth by obtaining ______
external sources of capital
The two main sources of capital are equity and ______
debt capital
Many small- or medium-sized companies have found that growth must be financed by ______
external sources of capital
Going public marks an important watershed in the life of a young company when a private company grows to a certain ______
size
Private firms often need to seek external sources of capital in pursuit of ______
growth
Study Notes
Raising Equity Capital: Introduction
- Two main sources of capital: equity and debt capital
- Equity capital: part of ownership given in return for dividends and voting rights
- Debt capital: liabilities for the firm that must be repaid
Private Firms and Growth
- Small- and medium-sized companies often require external capital to finance growth
- Internally generated capital may be insufficient to support growth
- External sources of capital can be accessed through the market
Going Public: A Watershed Moment
- Going public marks an important milestone in a company's life
- Private companies typically go public when they reach a certain size, characterized by:
- Increase in productive capacities
- Increase in total assets and revenues
Test your knowledge of raising equity capital with this quiz on advanced corporate finance. Explore topics such as private firms, IPO processes, IPO underpricing puzzle, and seasoned equity offerings. Prepare for Dr. Manara Abdelaziz Toukabri's Fin 440 course at the University of Tunis Tunis Business School.
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