Flotation Costs Are

question 99

Multiple Choice

Flotation costs are:

• A)insignificant and can be assumed away.
• B)the difference between the bid-ask spread on the sale of the security.
• C)commissions to the underwriting firm that floats the issue.
• D)None of these answers are correct.

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Definitions:

Treaty Power

This refers to the power of a country, often exercised by its executive branch, to negotiate, sign, and ratify treaties with other countries, subject to legislative approval in some cases.

Senate

The upper chamber of the United States Congress, consisting of two senators from each state, responsible for making and passing federal laws.

Executive Agreement

An agreement made between the President and a foreign government that is less formal than a treaty and does not require Senate ratification.

Advice And Consent

A constitutional power given to the U.S. Senate to ratify treaties and approve presidential appointments to the executive and judicial branches.