flotation

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Flotation (rotation) cost

The costs associated with creating capital through the issue of new stocks or bonds, including the compensation earned by the investment banker plus legal, accounting and printing expenses.

flotation

the process by which a new company or an established PRIVATE LIMITED COMPANY becomes a PUBLIC LIMITED COMPANY and issues SHARES to the general public. By going public a company is able to raise large amounts of capital by issuing a PROSPECTUS inviting shareholders to subscribe for shares. See SHARE ISSUE.

flotation

the issue of shares in a newly established or existing private company whereby the company goes ‘public’ and obtains a listing of its shares on the STOCK EXCHANGE. See SHARE ISSUE.