Flotation cost

Flotation cost is the total cost incurred by a company in offering its securities to the public. They arise from expenses such as underwriting fees, legal fees and registration fees. Firms are well advised to consider the magnitude of these fees as they also impact how much capital they can raise from an initial public offering.[1]

References

  1. ↑ A dictionary of business and management (5th ed.). Oxford [England]: Oxford University Press. 2009. ISBN 9780199234899. OCLC 277068142.


This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.