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"To keep financing costs in check and at the same time procure funds for the business, a company issues shares of the company in lieu of money which is called Equity Financing. This method is carried out by companies to improve the leverage of a company as too much debt hampers the profitability of a company.In this we will get to know about the Difference Between IPO And FPO
There are two methods of raising money by equity financing:
By Issuing IPO (Initial Public Offer)
By Issuing FPO (Follow on Public Offer)"
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