Finance help again !!!!?

Please help me out guys .

1. How would a listing create liquidity for existing shareholders ?

2. List any advantages or disadvantages of private equity funding compared with debt fundings.

I need answer for the question i ask and not money help . if you read the question . Its FINANCE HELP not FINANCIAL help . Thanks .

Private equity, as opposed to public equity, is money that is raised for ownership of a company from private sources. Key private equity sources are insurance, pension funds and increasingly from high net worth individuals.

1. Listing creates liquidity for existing shareholders. For companies that are already listed, floating more shares creates more shares - which usually means more volume that can be traded on any given day. Liquidity creates a more efficient market, for those that want to buy and for those that already hold the shares and want to sell. For those that are private and use the listing to go public, the listing means that the existing shareholders now have a very high-profile, efficient market to have their shares trade hands. This contrasts to the private market, whereby buyers and existing shareholders have to approach each other on an "over-the-counter" basis - which is a tedious task of asking for information, going back and forth on terms and then finally coming to an agreement. A listing creates a standardized, easy, fast and cheap (after initially listed) way of price-finding.

2. Advantages of private equity funding are as follows. First, you don't have the cost of Sarbanes-Oxley. Depending on who you talk to, the cost of compliance costs anywhere from a few million to $15m. Secondly, you don't have senior management time being sucked up by analysts like myself - asking dumb questions and kissing their behinds. Management can be focused on operations rather than playing to the market. Thirdly, private equity investors are very savvy. You don't have to play to the lowest common denominator trying to explain yourself. Roadshows, PR plans and investor relations can all be tossed out. Another advantage is that managers are no longer incentivized for short-term "gaming" their stock compensation. They are more likely to work for long-term goals. Private equity is also more flexible. You can structure a deal however you want. Private equity has infinite flexibility compared to the standardized equity and debt financing and even more than fancy "derivative" based financng.

Key disadvantages is that private equity tend to be hard nosed businessmen. They may include terms in the financing that place limits, create oversight or demand some sort of operational changes. While private equity M&A have stolen the news headlines for paying the highest price for lots of take-overs, private equity typically pays LOWER multiples than public shares. The lower multiple usually goes to compensate the investor for the lower liquidity. As a result, private equity funding can be more expensive to existing shareholders. Private equity is also notorious for wanting massively dilutive options with their equity if the firm is a start-up, each more dilutive than the previous rounds. If you are an existing shareholder in the "A" round, get ready to get diluted in subsequent B, C, D and E rounds of equity raising.