Similar financial terms
Transactions costsThe 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.
Round-trip transactions costs
Costs of completing a transaction, including commissions, market impact costs, and taxes.
Speculative motive
A desire to hold cash for the purpose of being in a position to exploit any attractive investment opportunity requiring a cash expenditure that might arise.
Precautionary motive
A desire to hold cash in order to be able to deal effectively with unexpected events that require cash outlay.
