transaction costs (redirected from Transaction cost)

Transaction Costs

Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it).

Notes:

This is what a broker or bank makes for being the middleman in a transaction.

See also: All-In Cost, Commission, Discount Broker, Slippage, Transaction, Transaction Exposure

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transaction costs

The expense incurred in buying or selling a security. Transaction costs include commissions, markups, markdowns, fees, and any direct taxes. Transaction costs, which are of special significance to investors who frequently trade securities, can vary substantially depending upon the firm with which the investor conducts business. See also discount brokerage firm.