Site navigation

Cost of issuing new shares to the public is known as

Flotation cost is the expense incurred in issuing new securities, including underwriting and issue administration expenses. Cost of equity and cost of capital are required…

Choose your answer

Cost of issuing new shares to the public is known as

Select one answer
Answer and explanation

Correct answer C

Flotation cost is the expense incurred in issuing new securities, including underwriting and issue administration expenses. Cost of equity and cost of capital are required rates of return, rather than the expenses of making an issue.

Practice for these exams

  • Gujarat SET (GSET)

Related question papers

Related exam syllabi

Related questions in this topic