Explanation:
Tightness refers to the cost of a round-trip transaction and is typically measured by the bid-ask spread and brokers' commissions. It is a key characteristic of market liquidity indicating how cheaply a position can be bought and sold.
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512.2. Which of the following refers to "the cost of a round-trip transaction, and is typically measured by the bid-ask spread and brokers' commissions," which is a characteristic of market liquidity?
A
Tightness
B
Depth
C
Adverse price impact
D
Resiliency
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