Which of the Following Will Tend to Increase Transaction Costs

question 80

Multiple Choice

Which of the following will tend to increase transaction costs?

• A) Buying or selling shares through an online broker.
• B) Buying or selling more than 1000 shares in a single trade.
• C) Buying or selling fewer than 100 shares at a time.
• D) Buying or selling at times when volume is high and the exchanges are busy.

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Definitions:

Benefits

Various forms of non-wage compensations provided to employees in addition to their normal wages or salaries.

Bond Indenture

A legal contract between a bond issuer and a bondholder specifying the terms of the bond, such as the interest rate, repayment schedule, and other conditions.

Bond Issuer

An entity, such as a corporation or government, that raises funds by issuing bonds, obligating itself to pay interest to bondholders and repay the principal at maturity.

Obligations

Legal or financial duties or commitments that an entity is required to fulfill.