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Long term and short term financing comparison

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I would like help understanding long-term and short-term financing, in comparsion of one another, and what type of each would be used.

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Response discusses Long-term and short term financing

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Long term financing deals with the various means of financing represent the financial structure of an enterprise. Thus the composition of debt and shares represents the capital structure of the firm. Let us discuss about both the sources of funds.

Equity
Equity represents ownership in the organization. There are various ways of raising money through equity shares:

1) IPO
IPO is initial public offer where the money is raised from the general public first time.
2) Follow on offers
Here the money is raised through the public in general by subsequent issues. These issues can be raised from the existing shareholder or from general public.
3) Strategic placements
The money can be raised from selling the partial ownership to the institutions.
4) Venture capitalists
Venture capitalists help in raising the money at the infancy stage. These also help in giving other inputs such as technical and managerial inputs for nurturing the organization.

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