GIGAMIND

Folder:
115 CFA
File:
115.050.03.07 Corporate Finance - Reading 33 - 7. Flotation Costs

7. Flotation Costs

l. explain and demonstrate the correct treatment of flotation costs.

What are flotation costs?
Flotation costs are the costs of issuing a new security, including the money investment bankers earn from the spread between their cost and the price offered to the public, and the accounting, legal, printing and other costs associated with the issue.


Source:
  • CFA