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Isn’t partial stake sale the same as financial investment?

It is similar but there is a subtle difference. Partial stake sale represents a current shareholder selling a share of the company in exchange for money (Please note that investor money is paid to the shareholder). Financial investment, on the other hand, is when the company issues new shares to the investor in exchange for money (in comparison, investor money is paid to the company which would use it for growth or recapitalization).


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