Two Stock Market Based Costs of Liquidity That Affects the Cost

question 23

Multiple Choice

Two stock market based costs of liquidity that affects the cost of capital are the:

• A)bid-ask spread and the specialist spread.
• B)market impact cost and the brokerage costs.
• C)investor opportunity cost and the brokerage costs.
• D)bid-ask spread and the market impact costs.
• E)None of the above.

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