Response to the following problem:
How do you think each of the following items would affect a company's ability to attract new capital and the flotation costs involved in doing so?
a) A decision of a privately held company to go public.
b) The increasing institutionalization of the "buy side" of the stock and bond markets.
c) The trend toward "financial conglomerates" as opposed to stand-alone investment banking houses.
d) Elimination of the preemptive right.
e) The introduction of "shelf registrations" in 1981.