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Friction costs |
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Friction costsCosts, 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.Friction costs Similar MatchesFrictionless tradeFrictionless tradeThe absence of natural barriers to trade, such as transport costs. FrictionsFrictionsThe "stickiness" involved in making transactions; the total process including time, effort, money, and tax effects of gathering information and making a transaction such as buying a stock or borrowing money. Frictional costFrictional costThe difference between an index fund return and the index it represents. The typically lower rate of return from the fund results from transactions costs. Frictionless marketFrictionless marketIdeal trading environment that imposes no costs or restraints on transactions. |
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