What are the costs of issuing stock to investors?

Question

What are the costs of issuing stock to investors?

Answer 1

there are quite a few costs. Among these are the accounting costs. A auditor has to be hired to bless the numbers.  Costs of issuing quarterly and annual reports.  Costs of giving analyst briefings.  Costs of having a public relations department.  Costs of complying with SEC filing requirements. (this may not be necessary for very small companies).  Costs of holding annual meetings.  Costs of sending out proxy material.  Costs of counting the votes.  Costs of fending off disgruntaled investors.  Cost of the IPO. Those are the ones I can think of.  There are most likely many more I have not considered.

Answer 2

which end? there is the time issue. companies have to place a value on the stock when they issue it and it takes some time and effort on the analyst's end to value it. They also have to pay the investment bank who finds the investors and issues the stock.

Answer 3

The underwriting fee and the dilution of earnings to existing investors.