The Stock Market
This series provides an introduction to stock markets. This includes the description of various types of stocks, and stock indices. It also covers the dividends and dividend based stock valuation methods. Primary and secondary markets are distinguished. Market mechanics, including types of orders, market participants, margin and short trades, are explained.
This series provides an introduction to stock markets. This includes the description of various types of stocks, and stock indices. It also covers the dividends and dividend based stock valuation methods. Primary and secondary markets are distinguished. Market mechanics, including types of orders, market participants, margin and short trades, are explained.
Course Syllabus
Trading Costs Involved in Stock Trading
Trading in stocks involves certain cost with are commonly known as trading costs. These courses are made up of the commission or the brokerage fees paid to the broker, and the bid-offer spread. In case of large transactions there is an additional cost known as market impact. This is because executing a large transaction may move the price from the originally quoted price.