Fixed costs
Production expenses that are independent of the level of output. Fixed costs could include debt repayments, security costs and marketing and administration costs. |
Similar financial terms
Fixed interest securitiesFixed interest securities relates to bonds, bills, stocks and debentures which offer a fixed rate of interest per period. The purchaser buys the income stream and the seller receives loan.
Fixed assets
Alternative name for noncurrent assets.
Fixed exchange rates
A fixed exchange rate system is one where the value of the currency against other currencies remains exactly the same. A fixed exchange rate doesn't stay fixed on its own. Governments have to hold large stocks of foreign exchange, so that they can actively intervene to hold the value of the currency stable. Monetary and fiscal policies will also have to be directed to keeping the rate constant.
Agency costs
The cost of resolving the agency problem. These might include stock options and bonus schemes to managers.
Transactions costs
The transactions costs are the expenses to the execution of a trade. It includes the commissions plus the difference between the price obtained and the midpoint of the bid-offer spread.
Storage costs
The cost of storing commodity.
Direct costs
Costs related directly to sales.
Trading costs
Costs of buying and selling marketable securities and borrowing. Trading costs include commissions, slippage, and the bid/ask spread. See: transaction costs.
Sunk costs
Costs that have been incurred and cannot be reversed.
Search costs
Costs associated with locating a counterparty to a trade, including explicit costs (such as advertising) and implicit costs (such as the value of time).
Round-trip transactions costs
Costs of completing a transaction, including commissions, market impact costs, and taxes.
Opportunity costs
The difference in the performance of an actual investment and a desired investment adjusted for fixed costs and execution costs. The performance differential is a consequence of not being able to implement all desired trades. Most valuable alternative that is given up.
Market timing costs
Costs that arise from price movement of the stock during the time of the transaction which is attributed to other activity in the stock.
Market impact costs
Also called price impact costs, the result of a bid/ask spread and a dealer's price concession.
Carring costs
Costs that increase with increases in the level of investment in current assets.
