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Public equity refers to the ownership rights represented by shares in a publicly traded company. These shares are bought and sold on stock exchanges, allowing investors to buy a piece of the company's assets and earnings. Public equity is a form of corporate finance that allows companies to raise capital from a large pool of investors, in contrast to debt financing which involves borrowing money with the promise to repay it with interest. Public equity provides a way for companies to access funding without taking on additional debt, while also allowing investors to participate in the growth and success of the company.