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types of long-term equity financing

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Name two types of long-term equity financing and list the relative advantages and disadvantages (to the borrower) of each.

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Name two types of long-term equity financing and list the relative advantages and disadvantages (to the borrower) of each.

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Long term equity financing can be raised either by approaching Private Equity Investors/ Venture funds or by listing the company's stocks on any recognized stock exchange.

The primary advantage of raising equity funds via private equity investors or venture funds is that the company avoids the complex procedure of raising funds via the capital markets and saves enormous amount of costs on such equity financing via IPO route. Secondly, PE investor or venture funds brings with them excellent ...

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Sandeep Bardia, MBA
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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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