flotation cost

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Flotation Cost

The costs that a company incurs when it makes a new issue of either stocks or bonds. Flotation costs include the costs of printing the certificates, paying the underwriters, government fees, and other associated costs. As new issues are intended to raise capital for the company, it is important for it to ensure that it will at least make back what it spends.

flotation cost

The expense involved in selling a new security issue. This expense includes items such as registration of the issue and payment to the investment banker. Flotation costs depend on the size and riskiness of an issue as well as on the type of security to be sold.
References in periodicals archive ?
In this case job rotation will be positive (that is, workers from other firms would be eager to work in firms with wages above the average) and such firms would tend to reduce their wages toward the industry average in order to reduce employment rotation costs (T).
A condition that can be expressed in terms of elasticities emerges from the job rotation function and its interaction with rotation costs in an optimization problem.
Thus it can be concluded that there was a reduction of 20% in rotation costs.
Since job rotation costs are not observable at firm level, a relationship between job rotation and intra/ inter--industry wage differentials is proposed.
The 79-cent carrying cost does not include cost of inventory insurance, breakage, repack, shrinkage, extra utilities, floor tax, rotation costs or space.