Many Investors Reject Online Stock Trading Because the Transaction Fee

question 48

True/False

Many investors reject online stock trading because the transaction fee for each trade usually is substantially more than when trading through a broker.

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Definitions:

Cost-Plus Transfer

Cost-plus transfer refers to a pricing method where the selling price of a product is determined by adding a fixed profit margin to the total cost of production or procurement.

Market-Price Transfer

The practice of setting the price for goods or services sold between divisions within the same company based on the current market price.

Variable Cost

Costs that vary directly with the level of production or sales volume.

External Suppliers

Third-party entities that provide goods or services to a company, but are not part of the company itself.