Which of the following is not a source of equity funding? a) Initial public offering

Business Dec 27, 2020

Which of the following is not a source of equity funding?

a) Initial public offering.

b) Angel investors.

c) Private placement.

d) Venture capital.

e) Government grants.

Expert Solution

The correct answer to the given question is option e) Government grants.

The equity funding is a source of funding where the equity-holders are given a share in the ownership of a firm in exchange of funds provided to the firm for making investment. Some examples of equity funding are initial public offering, follow-on public offering, angel investing, private placements and venture capital funding. The grants provided by a government is neither debt nor equity as the government does not expect anything in exchange for funds provided.

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