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Why do companies choose equity


There are many ways that companies can raise finance from using the owner’s own capital, to bank loans, venture capital (private equity) and equity finance.

In summary:

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And there are also many benefits for a company to go public. Although the main purpose for going public is to raise capital either for growth strategies and acquisitions or for debt repayment, it also has many other advantages including raising its profile amongst the financial and investors’ community and improving employee loyalty and retention.

 

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