The Cost of Issuing an IPO in Australia Is Higher

question 85

Multiple Choice

The cost of issuing an IPO in Australia is higher than most other security issuance fees. A typical spread is

• A)4%.
• B)5%.
• C)6%.
• D)7%.

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Definitions:

Supply and Demand

Fundamental economic model describing how prices vary as a result of a balance between product availability and consumers' purchasing desires.

Opportunity Cost

The financial loss associated with rejecting the subsequent preferable choice when deciding or selecting amongst various options.

Specialization

The process of focusing on and becoming expert in a particular subject or skill, or of businesses, regions, or nations concentrating on producing certain goods or services.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, essentially what is given up when choosing one option over another.