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Trading 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: Transactions costs. Trading Costs All commissions and other expenses related to the trade of a security. When an investor buys or sells a security, he/she must usually pay a fee to his/her investment adviser and/or broker. Research and other indirect costs informing investment decisions are not usually considered trading costs unless they directly relate to or result from a specific transaction. The investor accounts for these expenses when calculating whether an investment earned a profit or loss. See also: All in cost. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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