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Definition of 'Friction Cost'
The direct and indirect costs associated with the execution of financial transactions. Friction costs include the commissions and fees, interest rates, research time (opportunity costs), loan origination fees, tax implications and the time value of money associated with the transaction. A transaction's friction costs include all of the expenses associated with the transaction. The friction costs associated with a trade might include the actual cost of the shares, as well as broker commissions, exchange fees and tax liability on any earnings.
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Investopedia explains 'Friction Cost'
A student loan, for example, might incur several expenses in addition to the principal of the loan. Interest rates must be considered, as well as loan origination fees, a federal default fee, other application fees, and the time and research invested. Looking at the friction cost for a transaction gives a more comprehensive view of the expenses associated with the transaction.
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Search results for 'Friction Cost'
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http://www.investopedia.com/articles/retirement/07/estate-plan.asp
... The fee can be sizable, and may cause friction among heirs who feel the ... can be delayed
as the estate is settled, any delay comes at the cost of additional ...
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http://www.investopedia.com/articles/pf/08/preserve-car-value-vehicle-depreciation.asp
... underinflated tires can lower gas mileage by 2% through increased friction with
the ... more government estimates regarding your vehicle in The True Cost Of Owning ...
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http://www.investopedia.com/university/retirement-20/retirement-208.asp
... so makes your intention clear and can help to prevent any friction over questions ...
The cost of education can be high, especially at the tertiary/college level. ...
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http://stocks.investopedia.com/stock-analysis/2011/Timken-Combines-Value-And-Momentum-TKR-SWK-MKTAY-KDN-SNA0411.aspx
... at Seeking Alpha, the Timken Company (NYSE:TKR), which produces anti-friction bearings
and ... on invested capital, 200 basis points lower than its cost of capital ...
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http://stocks.investopedia.com/stock-analysis/2009/CSX-Heading-Back-On-Track-CSX-NSC-BNI-UNP-CNI1021.aspx
... cyclical tracks of the economy, so CSX's competitors have felt the same economic
friction. ... was cited in a Citi note in September for its "impressive" cost cuts ...
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http://stocks.investopedia.com/stock-analysis/2010/Undervalued-Asian-Assets-Key-To-Yahoos-Future-YHOO-GOOG-MSFT-NWS1005.aspx
... There is increasing friction with its Chinese partner, and analysts don't see ... meantime,
Yahoo's bottom line stands to benefit from the cost savings associated ...
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http://stocks.investopedia.com/stock-analysis/2009/Imagine-Your-Way-To-Success-WMT-WFMI-SWY-KR0601.aspx
... of the most valuable pieces of real estate in the US - it would cost you a ... Line Most
poor investment decisions are made due to too much friction - moving in ...
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http://stocks.investopedia.com/stock-analysis/2011/CSX-Barrels-Along-CSX-UNP-NSC-KSU-BRK.A0421.aspx
... A) Burlington Northern are other class-one major railroads rolling without friction,
in addition ... Beyond a point, fuel cost increases can blunt the rails, too. ...
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