Transaction costs

Fees associated with the execution of a securities order.

Transaction costs are incurred when an investor buys or sells securities. If an order is executed on the trading floor, the investor must pay a brokerage fee as specified in the fee schedule of the exchange.

Investors who trade securities on the exchange must do so through their bank. In return for its services as an intermediary, the bank will typically charge a fee equivalent to one percent of the price of the security.

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