Differential Rates and Transaction Costs. A toolkit for Practitioners, accountants and financial economists
It is our main concern in this paper to make for the following stages: a) Firstly, stock and flow differential rates will be introduced. Secondly, reverse differential rates are expanded on. Then, the transaction costs function will be featured. As long as we proceed with these issues, fully solved examples are supplied. b) Next, we handle direct applications to financial markets securities. Namely, time deposits, zero coupon bonds, foreign currencies. In each case, not only intuitive acquaintance with the subject is given, but foundations and examples as well. The foundations are conveyed by six lemmas which also give computation guidelines to be used in practice. Among the main conclusions we can draw from this research, two of them deserve due attention: First, microstructure, trading and information should be given serious regard because they could have the last word when we attempt to pick out the real winners among market securities. Second, differential and reverse differential rates have a say whenever we want to know about what remains of financial rates of returns after transaction costs.
|Date of creation:||Apr 2000|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (5411) 6314-3000
Fax: (5411) 4314-1654
Web page: http://www.cema.edu.ar/publicaciones/doc_trabajo.htmlEmail:
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rodolfo Apreda, 1999. "Transactionally Efficient Markets, Dynamic Arbitrage and Microstructure," CEMA Working Papers: Serie Documentos de Trabajo. 151, Universidad del CEMA.
- Rodolfo Apreda, 2000. "A transaction costs approach to financial assets rates of return," CEMA Working Papers: Serie Documentos de Trabajo. 161, Universidad del CEMA.
- Rodolfo Apreda, 1998. "Dynamic Arbitrage Gaps for Financial Assets," CEMA Working Papers: Serie Documentos de Trabajo. 134, Universidad del CEMA.
When requesting a correction, please mention this item's handle: RePEc:cem:doctra:166. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Valeria Dowding)
If references are entirely missing, you can add them using this form.