Transaction costs

In the financial market, generally the sum of all costs incurred in a transaction (all the costs of executing a financial transaction; these include brokerage commissions, fees for exercise and/or assignment, exchange fees, and margin interest). – As a term from the International Financial Reporting Standards (IFRS), all expenses incurred in the purchase or sale of an asset. In principle, such amounts would have to be taken into account in any case when determining the fair value. To date, however, different rules have been applied depending on the type of asset. The related issues are discussed in detail in the relevant literature. – In financial markets sometimes also said of the effort to mitigate asymmetric information. – Consumption of factors of production, such as bank staff services or clearing system services, incurred when changing one currency into another (the costs of changing one currency into another). – See risk elevation, subjective, insurance uncertainties. – Cf. Deutsche Bundesbank Monthly Report, December 2008, p. 35 (falling transaction costs in the sense of in monetary union).

Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/