Equity finance (股权融资 gǔquán róngzī) refers to the financing method that the shareholders of an enterprise give up some ownership to new shareholders in order to increase capital of the enterprise. The new shareholders will share the profits and growth of the enterprise with the old shareholders.
- 股 (gǔ) as in stock (股票 gǔpiào) or shareholder (股东 gǔdōng).
- 权 (quán) as in right (权利 quánlì) or balance (权衡 quánhéng).
- 融资 (róngzī) derives from
Equity finance (股权融资 gǔquán róngzī) word examples:
- Angel investor for equity finance (天使投资人股权融资 tiānshǐ tóuzīrén gǔquán róngzī).