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.
