Flotation cost
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.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Flotation cost, F. The percentage cost of issuing new common stock.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
