Asked by
Finasel Tolingan
on Nov 07, 2024
Verified
In regards to the cost of issuing securities, substantial economies of scale exist as related to issuance size.
Economies of Scale
Cost advantages reaped by companies when production becomes efficient, leading to a reduction in per unit cost.
Issuance Size
Refers to the total amount of securities, such as bonds or stocks, that an entity offers to the public for sale.
- Understand the risks and costs associated with issuing securities, including underpricing and direct issuance costs.
Verified Answer
ZP
Learning Objectives
- Understand the risks and costs associated with issuing securities, including underpricing and direct issuance costs.
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