Debt financing is a traditional financing method, mainly borrowing, including bank loans, private lending, issuing corporate bonds, pawning, lending and financial leasing. This kind of financing needs to repay the principal and interest. Equity financing mainly refers to listing, capital increase and share expansion, employee stock ownership and private equity. It does not need to repay the principal and interest, but only needs to pay dividends when the enterprise is profitable. The direct financing of enterprises that need partial transfer refers to equity financing activities such as initial public offering (IPO), rights issue and additional issuance, so it is also called equity financing; At the same time, it includes equity-related financing, and investors have the rights and interests, decision-making power and management right of the company. Indirect capital financing refers to the debt financing activities of enterprises whose funds come from loans from banks and non-bank financial institutions. Investors have the priority to distribute the company's income and obtain interest income than the company's equity owners, so it is also called debt financing. Direct financing includes listing financing, private placement and public offering. Listing financing refers to the company's public offering of shares in the securities market to raise funds. Stocks can be listed at home, abroad, on the main board or in high-tech enterprises, such as the Growth Enterprise Market (NASTAQ) in the United States and the Growth Enterprise Market in Hong Kong. Issuing shares is a kind of capital financing, investors have the right to claim the profits of enterprises, but the investment funds can not be recovered, and investors bear greater risks, so the expected return required is higher than that of banks. From this perspective, the capital cost of stock financing is higher than that of bank loans.