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Most research on firm financing studies debt versus equity issuance. We model an alternative source, non-core asset sales, and contrast it with equity. First, equity investors own a claim to the cash raised, mitigating the information asymmetry of equity (the "certainty effect"). Second, firms can disguise the sale of low-quality assets as motivated by dissynergies (the "camouflage effect"). Third, selling equity implies a "lemons" discount for not only the equity issued but also the firm, since it is perfectly correlated (the "correlation effect"). A discount on assets does not reduce the stock price since assets are not a carbon copy.

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