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

1 Answer

2 votes

Answer:

The correct answer is (A)

Step-by-step 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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