The costs associated with issuing securities to the public canbe high. Some type

Question

The costs associated with issuing securities to the public canbe high. Some types of securities have greater expenses associatedwith them than others. Which of the following is the most costlysecurity to issue?
a. Common stock. b. Corporate bonds. c. Preferred stock. d. All of the above are about equal in cost to issue. The costs associated with issuing securities to the public canbe high. Some types of securities have greater expenses associatedwith them than others. Which of the following is the most costlysecurity to issue?
a. Common stock. b. Corporate bonds. c. Preferred stock. d. All of the above are about equal in cost to issue.

Explanation / Answer

common stock is the most costliest  of the issues because it involves charges like underwriter's commission, finding suitable merchant broker, following the polocies of SEC, issue costs, flotation costs etc

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.