Ideas in this flowchart

• Equity financing provides firms with capital through ownership-based funding.
• 主要 sources of equity financing
• Common stock is a source of equity financing.
• Retained earnings are profits reinvested in the firm.
• Preferred stock is a source of equity financing.
• Venture capital often finances young companies.
• Selling stock creates financing costs.
• Issuing costs are part of the cost of selling stock.
• Potential dividend payments are part of the cost of selling stock.
• Preferred stock is more expensive than debt.
• Preferred-stock dividends are not tax-deductible.
• Preferred-stock claims are secondary to those of debtholders.
• Preferred stock is less expensive than common stock.