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Scenario: The New York Stock exhange impose a fee of $.0025 per share in addition to all existing fees and costs of on all transactions
Scenario:
The New York Stock exhange impose a fee of $.0025 per share in addition to all existing fees and costs of on all transactions carried out on exchange.
Question:
Suppose Rabbit Inc. now trades for 24 1/8 bid, 24 1/4 asked. While Turtle Inc. trades at 25 3/4 bid 27 asked. What differnces would you observe between investors holding Rabbit Inc. and those holding Turtle Inc.? Which of these two securities would find its returns most affected by the additional cost of trading? (explain)
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