Flotation Cost
The costs associated with the issuance of new securities. Investopedia Says:
Flotation costs include both the underwriting spread and the costs incurred by the issuing company from the offering. Expressed as a portion of gross proceeds, costs generally increase as risks associated with the issue increase, or the size of the offering decreases.
Also known as floatation cost. Related Terms:
Initial Public Offering - IPO
Prospectus |