HomeDefinitionsCompareDebt Friction costsThe financial definition for Friction costs:Costs, both implied and direct, associated with a transaction. Such costs include time, effort, money, and associated tax effects of gathering information and making a transaction. Similar MatchesFrictional costFrictional costThe difference between an index fund return and the index it represents. The typically lower rate of return from the fund results from transactions costs. Frictionless marketFrictionless marketIdeal trading environment that imposes no costs or restraints on transactions. FrictionsFrictionsThe "stickiness" involved in making transactions; the total process including time, effort, money, and tax effects of gathering information and making a transaction such as buying a stock or borrowing money. Click to compare definitions of Friction costs Click to view definitions beginning fr |