alleryStart learning →Costs of running an IPO typically run to what share of its value?
A5 to 8 paise
B5 to 8 shares
C5 to 8 percent
D5 to 8 rupees
Answer & Solution
Correct answer: C. 5 to 8 percent
1. Fees, legal work and marketing add up.
2. The cost scales with the issue size.
3. It is about 5 to 8 percent.
_Source: OpenStax Principles of Finance, Chapter 12, US Financial Markets._
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