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The raising of funds by selling stocks to the public is c...

The raising of funds by selling stocks to the public is called

A.

Equity financing

B.

Stock financing

C.

Debt financing

D.

Loan financing

Correct answer is A

Stocks are sometimes called equity because the buyer of the stock has part ownership of the company (that initially issued the stock). When a corporation sells stock it is selling an ownership interest in the corporation and raising funds for investment in plant and equipment (for example an initial public offering).