Transaction costs analysis is the method used by businesses and institutional investors to analyse the effectiveness of their portfolio transactions. The examined costs are represented by both explicit (commissions and fees) and implicit costs (opportunity cost and price changes).
See also: transaction costs (TCs)are the costs arising from organising the transfer of goods and services between two agents (Cheung, 1992). Transaction costs provide the key to understanding alternative forms of economic organisation and contractual arrangement.... More
