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The bid-ask spread is the difference between the bid price (the amount of money you get when you sell) and the ask price (the amount of money it costs to buy). Since the ask price is higher than the bid price, it costs you more money to buy the asset than you would receive should you be selling the same asset. This spread is the price (along with a commission) for making the trade.
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How is transaction cost?
Transaction cost is the price that you have to pay or that you are likely to receive while carrying out an economic exchange.
What does the transaction cost approach implies that an organization should?
select a mechanistic structure to reduce costs
Why are mutual funds popular among investor?
Reduce risk, portfolio diversification, low transaction cost
Your mortgage broker did not explain all the details of your refinance. What can you do It has cost close to 20000?
If your copies of your mortgage documents don't show all the details of your transaction and you don't understand the resulting costs then start by calling your Attorney General's Consumer Division. They should be able to direct you to the proper authority for help.
How can online stock trading produce income?
Online stock trading produce income by transaction fee. Each transaction cost a certain percentage of the stock no matter if the stocks goes up or goes down. Be wary.
Explain market imperfections approach and transaction cost approach to Foreign Direct Investment?
market imperfections approach
How do you calculated the cost of transaction for a brokerage firm?
take the toal operating cost and divide it on the number of transaction
How is transaction cost?
Transaction cost is the price that you have to pay or that you are likely to receive while carrying out an economic exchange.
Does bartering have lower transaction costs?
No the transaction cost of bartering is higher because in this various types of cost ared included.
What is a method of approximating cost functions?
Transaction analysis
Is a method of approximating cost functions?
Transaction analysis
What does the term 'transaction cost' mean in relation to economics?
The transaction cost means the price you pay for a certain item or service. This is the money that is transferred between customer and service provider.
Explain cost center in the context of Cost Management Accounting?
Explain cost center in the context of cost accounting
The cost of coordinating the efforts of subunits is known?
The cost of coordinating the efforts of sub-units is known as Transaction Cost
What is incremental cost?
It is the cost of one unit of item that marginally increases the profit base of a transaction.
How can the adverse selection problem explain why you are more likely to make a loan to a family member than a stranger?
In my understanding,I think we can reduce risk when we make loan to a family members as well as lowering a transaction cost to him/her.
How do you explain cost of capital and its types?
Explain the term cost of capital and its importance in investment decision
