Two Stock Market Based Costs of Liquidity That Affects the Cost

question 6

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.

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Definitions:

Self-Control

The capacity to manage personal feelings, ideas, and actions when confronted with desires and sudden urges.

Neglectful

Failing to care for or give proper attention to someone or something, often resulting in harm or lack of development.

Indulgent

Characterized by yielding to one's desires or whims easily, often excessively or beyond what is considered healthy or appropriate.

Indulgent

Characterized by being overly generous or lenient, often to the point of enabling negative behaviors.