1. How do you think each of the following items would affect a company's ability to attract new capital and the flotation costs involved in doing so?
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1. How do you think each of the following items would affect a company's ability to attract new capital and the flotation costs involved in doing so?
a. A decision of a privately held company to go public.
b. The increasing institutionalization of the "buy side' of the stock and bond markets.
c. The trend toward "financial conglomerates" as opposed to stand-alone investment banking houses.
d. Elimination of the preemptive right.
e. The introduction of "shelf registrations" in 1981.
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a. Attracting capital would become easier and floatation cost would decrease.
b. The increasing institutionalization of the "buy side" of the stock and bond markets should increase the ...
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