The talks also reviewed means of accelerating the implementation of a program for getting governmental companies to float in the bourse in addition to lowering trading cost
and increasing bourse efficiency.
The Saudi market recorded an increase of 4.8 percent in trading cost
to reach USD 232.2 billion which is 79 percent of the overall trading activity of the GCC market.
Suppose the border price of offshored input from industry k is [P.sup.*.sub.k], but in addition, there is an iceberg trading cost
such that 1 + [[tau].sub.k] units of the input must be shipped for 1 unit to arrive at the destination; the effective price of a unit of offshored input from industry k is then [P.sup.*.sub.k] (l + [[tau].sub.k]).
If you use an impact cost model to assess changes in trading cost
, you get some interesting results.
Though South Asia has significantly reduced import tariff, the trading cost
across its borders is the highest in the world, he said, citing, a number of non-tariff barriers have been identified, which not only hamper trade but also increase the business cost.
The difference between the domestic production cost and the delivered cost at the target market is the trading cost
of good i at market j.
Translating this into the required return on the security which is costly to trade, we obtain that the required return is the return that would be required on a similar security which is perfectly liquid, plus the expected trading cost
per period, i.e., the product of the probability of trading by the transaction cost.
Let C denote a percentage trading cost
defined in the following sense.
Instead, during the trading day investors will see their trading cost
relative to a fund's net asset value, e.
They estimate larger trading cost
reductions for less liquid and lower-rated bonds, and for larger trades.