What are the cost of fleet?

Fleet costs are one of the costs of increasing capital that the company could spend. It is most often associated with issuing capital securities such as stocks. In some cases, it may also apply to debt securities. This includes subscribers who in this context ensure that the issuing shares will receive a certain amount to the share and thus a certain total. In the event that the investment public does not buy all the issued shares when starting, the subscribers buy and hold any unsold shares.

to compensate for the subscriber for this risk, the amount that the company receives for each share will be lower than the price that public investors pay for new shares. This is known as subscription propagation and is effectively a profitable range of subscribers. It is usually explicit as a percentage of the total price per share. The subscription range may vary significantly from the case to the case to a large extent determined by the total amount that is subscribed and the assessment probableSti that the public will buy shares at the elected price of the release.

There are several other expenditures that can be classified as a fleet cost when issuing shares. Some of these costs are directly spent, for example any fees for a stock market statement through which stocks are offered for sale. Others take the form of internal costs, such as the administration involved in the process. Exactly how this type of fleet costs is taken into account may vary. For example, during the fleet process, there may be a direct increase in staffing costs, but in this sense, the cost of the opportunity may be that employees are diverted from other obligations.

In most cases, the proportional effects of the cost on the fleet are less if the total inventory value is higher. This is mainly because administration and legal fees tend to be fixed or have minimal costs. OtherThe reason is that companies that offer major stock problems tend to be more feasible, and therefore consider less risky for investors. On the other hand, this reduces the risk that stocks will not find buyers, thus reducing the subscription range.

Fleet costs will usually be counted when the company focuses on the cost of increasing capital. This can affect which option has the most economic sense. For example, in some cases, it may seem that issuing shares and discretion of dividends is a "cheaper" way to get cash than loans from financial institution and interest payment. After factoring in the cost of the fleet, the balance between the two options may change.