By definition,equity finance
A)is accomplished when units of government sell bonds.
B)is accomplished when firms sell bonds.
C)is accomplished when firms sell shares of stock.
D)involves "fair" interest rates or dividend yields.

Question

Quizplus · Accepted Answer

Equity finance is the process of raising funds by selling shares of stock in a company. It does not involve selling bonds, as option A and B suggest. Option D is also incorrect, as equity finance does not necessarily involve "fair" interest rates or dividend yields.

By Definition,equity Finance