Raising money by selling stock is known as equity financing.
Equity financing is a means of obtaining new cash by selling firm shares to public, institutional, or financial entities. Since they have earned the ownership stake in the corporation, the persons who buy shares are referred to as shareholders.
Stock financing differs from debt financing in that the former involves selling a portion of the company's equity, whilst the latter involves borrowing funds.
National and local governments actively monitor equity financing to ensure that it is carried out in conformity with the law. The primary benefit of equity financing is that the money does not have to be repaid.
Therefore, the answer is equity financing.
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