The difference between the execution price of a security and the price that would have existed in the absence of the trade is referred to as:
A) The bid-ask spread.
B) The execution cost.
C) The market timing costs.
D) Income spread.
E) None of the above.

Question

Quizplus · Accepted Answer

The execution cost refers to the difference between the execution price of a security and the price that would have existed in the absence of the trade.

The Difference Between the Execution Price of a Security and the Price