flotation costs

Definition

The costs of issuing a new security, including the money investment bankers earn from the spread between their cost and the price offered to the public, and the accounting, legal, printing and other costs associated with the issue.

Use flotation costs in a sentence

You should try and make sure that you are keeping up with your flotation costs and getting them in your favor.

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A good money manager must always be aware of not only the man power required, but also the flotation costs on any new project.

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The founders of the company often fantasized about the massive windfall they would reap after going public, yet failed to consider the attendent flotation costs.

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flotation cost IPO