Definition, Meaning & Synonyms

equity-issue

noun

/ˈɛkwɪtiˌɪʃu/

Definition

A process by which a company raises funds by issuing shares of equity to investors.

Examples

The startup faced an equity issue when it needed additional funding to launch its new product line.
Companies often turn to an equity issue to strengthen their balance sheet and support growth initiatives.
Investors closely monitor equity issues to gauge the company’s financial health and future prospects.

Meaning

Equity issue refers to the act of issuing new shares to raise capital for the company, which can help finance initiatives, expansion, or pay off debt.