Transactions costs

Transactions costs

The time, effort, and money necessary, including such things as commission fees and the cost of physically moving the asset from seller to buyer. Transcations costs should also include the bid/ask spread as well as price impact costs (for example a large sell order could lower the price). Related: Round-trip transactions costs, information costs, search costs.

Transaction Cost

The total cost of a security transaction after commissions, taxes, and other expenses. For example, a security has a price, but transaction costs include the fee one must pay the broker, capital gains taxes, among other things.