In addition to direct costs, there are other costs associated with new security offerings.These other costs include all of the following except:
A)the cost of incentives such as the "Green Shoe" option
B)the cost of overpricing
C)the cost of stock price declines
D)the cost of management time

Question

Quizplus · Accepted Answer

The cost of overpricing is not considered an "other cost" associated with new security offerings. The other costs listed are all possible consequences of going public or issuing new securities, including the cost of incentives, stock price declines, and the significant amount of management time required during the process.

In Addition to Direct Costs, There Are Other Costs Associated