These conditions frequently prompt perverse shifts in performance or cash flows resulting from cases of an economic slowdown or income disruption by way of tenant bankruptcy or natural disasters, among others. Equity financing sells shares of a company to raise capital and create ownership rights for investors. There are many instruments falling under equity financing, such as common stock and preferred shares. For start-ups, it also comes in handy since it can be used to pay off initial costs. Investors reap their gains from the dividends or the higher share price. It may come from personal circles, professional investors, or an IPO.