Explain in about 2 pages how an IPO differs from an issue of additional shares by a company with existing shares which already has a listing. Suggest why these differences lead to higher costs for IPOs. Explain what implications this has for firms and the decisions that financial managers must make.
The question belongs to Finance and it is an essay which differentiates between initial public offering (IPO) and the issue of additional shares by a company. The particular differences in terms of cost of both these issues has been given in the solution.
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