Question : Which cost refers to the cost involved in issue of securities?
Option 1: Flotation cost
Option 2: Operating cost
Option 3: Both a and b
Option 4: None of the above
Answer (1)
17th Jan, 2024
Correct Answer: Flotation cost
Solution : Flotation cost refers to the cost involved in the issues of securities for example underwriting commission brokerage stamp duty etc. Poms prefer securities with the least floatation cost.
Hence, Option A is correct.
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