Equity Financing refers to the totality of non-debt securities (usually common or preferred shares of stock) issued by the company, or Ownership in the capital of a Company, usually expressed as a difference between the value of the assets and the value of the liabilities of a company.

In addition, it refers to the Company's issuance of equity securities (typically shares of common or preferred stock) to raise capital. Capital raised in exchange of the company's equity securities does not need to be paid back (unlike debt).