Other costs, which could be substantial, are difficult to quantify. We estimate two costs imposed on IPO issuers the cost of a put option and the negative signaling cost associated with a delay. More significantly, the pricing delay may have the unintended consequence of causing seasoned offerings to be withdrawn, imposing costs on both issuers and investors. Additional non-quantifiable costs will be imposed on all of these issuers. We view the above figures as understating the total cost of the proposed delays.
Capital markets are global.
Markets, like capital, seek friendly havens. This move could, in large part, be permanent even if, at some later stage, the timing delays are removed. There are three main sections in our analysis. The second section highlights the ever-present competition for domestic markets presented by foreign markets. It is a challenge for US markets to maintain their competitive edge in a world with several other dynamic and growing financial centers.