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Explanation:
Slippage is a term used in finance to describe a situation where the execution price of a trade is different from the expected price due to market conditions, such as volatility or low liquidity.
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Q.3884 Velma Jones placed an order to sell a stock when the market price was $50. Due to market volatility, by the time Jones’s broker sold the stock, the price had fallen to $48. In the market, this phenomenon is known as:
A
Bid-ask spread
B
Adverse price impact
C
Slippage
D
Leverage effect