Flotation cost
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Flotation cost, F, is the cost occurring when a company issues a new security, including fees to an investment banker and legal fees.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Flotation cost, F. Those costs occurring when a company issues a new security, including fees to an investment banker and legal fees.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.