Explain anyone

KUMAR CHTN

Can u share the text

Sriram Somayajula Admin

The rate at which you buy a stock on a stock exchange vs. the ideal rate at which you could have purchased - the diff between the two is impact cost. If you wish to buy 100 shares let us say the price is 10 Rs./ share buy when you place an order to buy 120 shares the price goes up to Rs.11/ share. The increase in the cost of doing a transaction because of low liquidity is impact cost - it exists both for buy orders as well as sell orders. Highly liquid markets have low impact costs. It is not relevant for you in Foundation You can know more here https://www1.nseindia.com/products/content/equities/indices/impact_cost.htm