Frictions(redirected from friction)
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Related to friction: coefficient of friction
The "stickiness" involved in making transactions; the total process including time, effort, money, and tax effects of gathering information and making a transaction such as buying a stock or borrowing money.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
The processes involved in making a transaction. For example, if one wishes to buy a stock, one must first determine the price, conduct research, comply with regulations, and spend time doing each of those things. Frictions include both monetary and non-monetary costs. They are associated with the relative difficulty of conducting a transaction. See also: Friction costs, Frictional unemployment.
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