And a loan would let you do the same. The comparison is valid. For some reason there's a stigma against debt financing because it has to be "paid back" in insta

And a loan would let you do the same. The comparison is valid. For some reason there's a stigma against debt financing because it has to be "paid back" in installments. Equity financing still has to be paid back, the transaction just has different mechanics. Equity investments don't "raise the value" of the firm. They simply signal that other people with money believe you will generate X amount of dollars in the future. Debt financing involves signals, too: the interest rate reflects what other people with money think about your ability to generate X amount of dollars in the future (to hopefully pay back your loan). GE pays a very low interest rate on its bonds because of its value and perceived ability to pay back debt.