Which of the following do firms consider in the choice of securities issued?
A)Whether the chosen security will have a fair price in the market
B)The transactions costs of the chosen security
C)The tax consequences of the chosen security
D)All of the above are considered.

Question

Quizplus · Accepted Answer

Firms consider all of the above factors when choosing which securities to issue. They want to issue a security that will have a fair price in the market to ensure that it will be purchased by investors. They also consider the transactions costs of the chosen security to ensure that the costs are not too high, which would reduce the overall value of issuing the security. Finally, they consider tax consequences to ensure that they are not negatively impacted by tax liabilities.

Which of the Following Do Firms Consider in the Choice