• Refers to the commissions, fees and other costs of executing a transaction. The other dominant cost is the spread between the bid and offer and price adjustments for size. Sometimes, there are additional expenses in trading odd lots or very large blocks.
• The difference between estimated transaction costs and actual transaction costs. The difference is usually composed of revisions to price difference or spread and commission costs.
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| ||Trading costs: Costs of buying and selling marketable securities and borrowing. Trading costs include commissions, Slippage, and the bid/ask spread. See: transaction costs.|
What to Know Before Declaring Your Financial Independence: Twenty-somethings may not realize it, but every time they enter a new phase of their life as young adults - perhaps starting college, a career or a family - they're also venturing into a new world of money management. Here are ways to be prepared. More...
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