One major expense associated with issuing new shares of common stock is ________.
A) coupon payment
B) sunk cost
C) overvaluation
D) underpricing

Question

Quizplus · Accepted Answer

Underpricing is a major expense associated with issuing new shares of common stock as the company may choose to offer the shares at a lower price than the market value to attract more investors. This results in a loss of potential revenue for the company.

One Major Expense Associated with Issuing New Shares of Common