Financing activities refer to the transactions that a company undertakes to raise capital and manage its financial structure. This includes activities such as issuing stocks, borrowing funds through loans or bonds, and repaying debts. These actions help a business secure the necessary funds to operate and grow. Additionally, financing activities can involve paying dividends to shareholders or repurchasing shares. These transactions are essential for maintaining investor confidence and ensuring that the company has the resources needed for future investments and operations. Overall, financing activities play a crucial role in a company's financial health and stability.