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14 October, 19:55

When market price of a security has reached an equilibrium, transaction cost will be?

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  1. 14 October, 20:02
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    The correct answer is (A)

    Explanation:

    Equilibrium in a security market shows that buyers and sellers have identified a price at which they can sell and purchase securities. This means that the gap between the bid price and ask price is small. Active trading takes place in a state where a security market reaches equilibrium, in this situation the commission or transaction cost tends to be lower.
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