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27 June, 01:01

In

, people invest money in a company in exchange for the company's

.

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  1. 27 June, 01:30
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    In equity crowdfunding, people invest money in a company in exchange for the company's shares

    Explanation:

    Equity crowdfunding is the process in which people invest in start up companies and early stage companies that have not been listed on a stock market in exchange for shares in that company. As a result of the investment, the person becomes a shareholder and makes profit when the company do well but if the company fails, shareholders make losses.

    Startups and early-stage companies use this method to raise capital.
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