I’ve a basic doubt related to option C. The bid-ask spread will be borne by an investor only when he/she does a round trip i.e., buying & selling or vice versa, right?
How can while buying we can bear the spread?
Please explain this concept. Thank you!
The bid-ask spread refers to the transaction cost obtained when a stock’s bid price is subtracted from its ask price…so when you buy a ETF it acts as a cost as you can sell at lower price and buy at higher price.
Ok, a round trip is not a necessity than to consider this cost?
Yes
Thank you Jay.