The costs incurred by a publicly traded company when it issues new securities. Flotation costs are paid by the company that issues the new securities and includes expenses such as underwriting fees, legal fees and registration fees. Companies must consider the impact these fees will have on how much capital they can raise from a new issue
Read more: Flotation Cost Definition | Investopedia http://www.investopedia.com/terms/f/flotationcost.asp#ixzz48EPzoatZ
Follow us: Investopedia on Facebook