The costs associated with issuing securities to the public canbe high. Some type
ID: 2661676 • Letter: T
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