Corporate Finance
3rd Edition
ISBN: 9780132992473
Author: Jonathan Berk, Peter DeMarzo
Publisher: Prentice Hall
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Question
Chapter 1, Problem 15P
Summary Introduction
To Determine: The Reasons Bid-Ask Spread being a Transaction Cost.
Introduction: A transaction cost is the aggregate cost of purchasing or trading an asset that includes commission, stamp duty and different expenses or applicable taxes. Generally, the procedural or incidental expenses of executing any business exchange.
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