#35540 1 PAGE WITHIN 6 HRS

Filename: 3335540.docx Date: 2018-10-27 22:21 UTC Results of plagiarism analysis from 2018-10-27 22:22 UTC

5 matches from 2 sources, of which 2 are online sources.

PlagLevel: 10.5%

[0] (4 matches, 10.5%) from https://yourbusiness.azcentral.com/commo...ock-financing-private-company-12885.html [1] (1 matches, 2.2%) from https://yourbusiness.azcentral.com/examples-owners-equity-company-25694.html

Settings Sensitivity: Medium Bibliography: Consider text Citation detection: Reduce PlagLevel Whitelist: --

Analyzed document

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Title: Holders of Equity Capital Name: Institute: Date:

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Almost every owner of the business know about traditional debt financing through loan of the bank. Additionally have heard the expression "venture capital" or” angel investment” however are new to equity financing. Equity financing happens when a business issues stock, giving a possession stake in the business in return for funding.[0] Potential equity investor include venture capitalists, angel investors, partners and large customers.[0] Companies can issue common stock or preferred stock can issue basic stock or favored stock.[0] (Wright, 2007) Raising Equity capital is one of the tough task of financing however it is the most looked for after type of financing. Equity financing is the most attractive type of financing as the business does not begin producing income when it is begun, so having debt structure around then would make an extra burden on the organization as it requires normal installment of interest. In the meantime equity financing does not require any security. So equity financing is more desirable at the initial stage of any business. (Motley, 2011) It would be better for the organization to look for some extent of debt outside the organization. The capital structure alludes to the extent of equity and debt finance. In any case, the ideal capital structure alludes fitting extent of equity and debt finance, which helps in decreasing by and large expense of capital. Most likely, there is no or less business chance equity financing but debt financing carries advantage of tax assessment. Interest on debt finance is assess deductible and in this way it fitting for the firm to have suitable mixture of equity and debt finance. In this manner, the organization is proposed to raise some amount of debt finance (to the extend business and financing risk is manageable by the company).

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Holders of Equity Capital

References Motley, F. (2011). What Is the Difference Between a Shareholder vs. an Equity Holder? The Motley Fool's Knowledge Center. Wright, T. C. (2007). Common Vs. Preferred Stock for Financing a Private Company.[0] [1] azcentral.