There are generally 3 types of equity: common shares, preferred shares and shareholder loan.
Common shares are held by the last beneficiaries in case of dividend distribution or company liquidation, preferred shares have instead higher liquidation and dividend priority, while shareholder loan have the highest liquidation position, interests paid and no dividend paid.
Sources of equity are typically of two categories: private market and public market.
The life of a company usually begins in the private market, getting financed by partners, then possibly venture capital firms, which invest in early stage businesses, and private equity firms, which invest in more mature realities.
The company could then go public with an Initial Public Offering, raising capital from institutional investors (the majority in the public market) and/or retailer investors.
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