Countries need short, medium, and long-term investmentplans for production growth and development. Differentsources for these investments can be supplied through retainedprofit, stock issuance, and bank loans, or a combination them. Institutions and firms need huge amount of capitals for theirsurvival, production, and also development of activities. In addition, these institutions and firms rely heavily on financialmarkets for self-Financing. The role of financial markets is toprovide the required capitals for institutions and firms. Financingstrategy is considered as one of the main areas of financialmanagement decisions in companies seeking to increase shareholders’ wealth. Therefore, the aim of this paper was to discussconventional methods of external Financing through debt andstock issuance and explain their associated advantages anddisadvantages.