Friction costs

Definition:

Costs, both implied and direct, associated with a transaction. Such costs include time, effort, money, and associated tax effects of gathering information and making a transaction.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Heavy

An equities market now dominated by sellers, or oversupply, resulting in falling prices. See: Overbought, resistance level, tired.

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