Which type of offering will generally incur the lowest direct issue costs as a percentage of gross proceeds?

Question

Quizplus · Accepted Answer

Straight, investment-grade bonds typically have the lowest direct issue costs as a percentage of gross proceeds because they are easier and quicker to issue than equity offerings such as IPOs and SEOs, and their creditworthiness means they require less due diligence and underwriting. Convertible bonds and small-sized IPOs may have higher issue costs due to the complexity involved, while large-sized IPOs and SEOs may have significant legal and regulatory fees.

Which Type of Offering Will Generally Incur the Lowest Direct