Flotation costs are typically greater in the secondary market than in the primary market.

Name: Flotation costs are typically greater in the secondary market than in the primary market.
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Quizplus · Accepted Answer

Flotation costs are typically higher in the primary market because this is where a company issues new securities and incurs underwriting fees, legal fees, and other costs associated with the initial offering. In the secondary market, securities are traded among investors, so these initial costs do not apply.

Flotation Costs Are Typically Greater in the Secondary Market Than