Which of the Following Is NOT a Cost of Issuing

question 124

Multiple Choice

Which of the following is NOT a cost of issuing securities?

• A) Legal fees, filing fees, taxes.
• B) Losses related to underpricing.
• C) The spread.
• D) Losses on share value one year after the issue.
• E) Abnormal returns on seasoned offerings.

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Definitions:

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of additional income that will be taxed.

Marginal Tax Rate

The rate at which the next dollar of taxable income will be taxed.

Total Income

The sum of all earnings received by an individual or entity, including wages, salaries, benefits, and income from investments.

Total Taxes

The cumulative amount of taxes levied by a government on an individual, corporation, or other entity in a specified period, including income, sales, and property taxes.