Which of the following is NOT included in flotation costs of an IPO?
A)underwriting fees paid to underwriters
B)direct issuing costs
C)oversubscription option
D)overpricing

Question

Quizplus · Accepted Answer

Overpricing is not a part of flotation costs. Flotation costs are the costs incurred by a company when it issues new securities to the public, such as underwriting fees paid to underwriters and direct issuing costs. Oversubscription option refers to the option to issue additional shares to meet excess demand and is also a part of flotation costs.

Which of the Following Is NOT Included in Flotation Costs