Asked by Vanessa Massie on Apr 28, 2024
Verified
Explicit costs of a stock IPO tend to be around ________ of the funds raised.
A) 1%
B) 7%
C) 15%
D) 25%
Stock IPO
An Initial Public Offering, the process by which a private company goes public by offering its stock for the first time to the general public and other investing institutions.
- Understand the costs, regulations, and mechanisms related to public offerings and trading securities.
Verified Answer
SB
Schlindlyne BellamourApr 29, 2024
Final Answer :
B
Explanation :
Explicit costs of a stock Initial Public Offering (IPO) are typically around 7% of the funds raised. This includes underwriting fees, legal fees, accounting fees, and other expenses directly associated with the process of going public.
Learning Objectives
- Understand the costs, regulations, and mechanisms related to public offerings and trading securities.