Ok, so we have established that Equity is your investment into YOUR business and it is an important aspect of financing your business.
We have also established that bringing in more Equity means having to share your business with other people. Its kind of like bringing another person in to tell you how to live your life (why would ANYONE want to do that???).
Ok, but what we still have not explored is how Equity works out in the stock market.
First off, let us take a look at your normal business. It starts off as a normal single-owner business and then said single owner finds some partners to expand his business and they grow larger. So lets say the business grows EVEN larger, it needs more sources of finance. Debt is expensive, so said owner gets EVEN more people to contribute money to the business.
