Download App

FINANCIAL MANAGEMENT — OCM STD 12 Commerce — Question

Gujarat BoardEnglish MediumSTD 12 CommerceOCMFINANCIAL MANAGEMENT3 Marks
Question
What is the cost of issuing securities?
✓

Answer

  • When a company issues securities for raising the capital, it has to incur expenses for doing so.
  • The expenses for issuing securities include releasing prospectus, underwriting commission, brokerage, etc. As a result, the cost of capital increases.
  • The expense on issuing debenture is lesser then issuing securities.

Need a full question paper?

Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.

Start Generating Free

Explore more

More "3 Marks Each" from FINANCIAL MANAGEMENT→FINANCIAL MANAGEMENT — all question types→OCM STD 12 Commerce question papers→Gujarat Board STD 12 Commerce question papers→Gujarat Board question paper generator→

Similar questions

Write a short note On Line Organisation.
→
Write a detailed note on commercial bills.
→
What are the objections against advertisement?
→
What is liberalization? Which steps are taken by the Indian government as a part of liberalization?
→
What is contingency plan?
→
Discuss the modern method of recruitment.
→
What is a formal organization?
→
Explain: “Nation’s economic progress is possible due to share market”.
→
What is a functional organization? Explain briefly. Why did the need arise to set-up functional organization structure?
→
Mention the points of the changes in social concept through marketing.
→