Historically, general cash offers have had average ﬂotation costs higher than pure rights offerings.

Name: Historically, general cash offers have had average ﬂotation costs higher than pure rights offerings.
Brand: Quizplus
Rating: 4.7 (53 reviews)

Question

Quizplus · Accepted Answer

General cash offers involve selling new shares in the open market, which can require higher flotation costs such as underwriting fees and marketing expenses. Pure rights offerings involve offering shares directly to existing shareholders, which can result in lower flotation costs.

Historically, General Cash Offers Have Had Average ﬂOtation Costs Higher