THIS READING CONSIDERS THE TOPIC OF TRADING, SPECIFICALLY WITHIN THE U...

14) [Note: This reading considers the topic of trading, specifically within the U.S. stock market. Because this reading was written prior to the adoption of decimal trading in the U.S. market, the conclusions concerning measurement of transactions costs as they relate to price spreads may not reflect the current environment. However, the general concepts presented in the reading remain valid.] b) identify, calculate, and contrast the various cost components of trading; c) recommend appropriate trading strategies to reduce trading costs, given the portfolio manager’s trade motivation.