Which of the following statement is NOT correct? 12b-1 Fee is not a trading cost for...

Which of the following statement is NOT correct?

		12b-1 Fee is not a trading cost for investors when trading common stocks
		Mutual funds investors pay taxes on capital gain and dividends
		None of the above
		Price Impact is not a trading cost for investors when trading common stocks
		There is a decrease in number of IPOs after 2000

Solutions

Expert Solution

Option D is correct as it is the only false option. Price impact is a significant cost to traders particularly when the size of the order is big.

jeff jeffy answered 2 years ago

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