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Initial public offering and the issue of additional shares

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Reference no: EM13828170

Problem:

Explain in about 2 pages how an IPO differs from an issue of additional shares by a company with existing shares which already has a listing. Suggest why these differences lead to higher costs for IPOs. Explain what implications this has for firms and the decisions that financial managers must make.

Additional Information:

The question belongs to Finance and it is an essay which differentiates between initial public offering (IPO) and the issue of additional shares by a company. The particular differences in terms of cost of both these issues has been given in the solution.

Total Word Limit: 515 Words

Reference no: EM13828170

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