Finanțarea societară (equity)
Corporate financing

Summary/Abstract: Two are the external sources of corporate financing: equity and debt. These are exclusive and can be combined in turn (other sources of external financing no longer exist, but only variants thereof). Capital with which a company is financed is its engine, no company being able to operate without capital regardless of the industry. Funding may be private or public. Private financing is provided through banking credit or equity contracted through direct negotiation with investors. Each mode of financing has advantages and disadvantages, not only in terms of financial costs (direct) but also indirect costs. Internal funding source is self-financing, i.e. reinvesting the company's profit instead of distributing it in the form of dividends. Balancing the use of internal and external financing sources, as well as the share of an external source in relation to another external source, primarily depending on the cost of financing (direct or opportunity) is a difficult, important and complex decision. The more the company is and/ or the more attractive for investors, the more varied the range of financing options and the cost structure that is heavily influenced by rating agencies. Conversely, a small company without too many development prospects will not have access to all available sources in the market and will have to confine itself to small bank loans. A specific form of finance is the financial assistance. This is crucial in performing Leverage Buyouts or Management Buyouts. Although it was prohibited by the first form of the Second Companies Directive, now it is fully permitted provided that the company complies with the acquisition of its own shares, this being protected both the creditors and the shareholders. Unfortunately, Romania didnot transpose the last form of the former Second Companies Directive (2006), not even after the recast or codification by Directive 2017/1132.

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