CHAPTER 5
The Eight Major Categories of Transaction Costs
Everyone hates paying commissions, margins, fees, transaction fees, brokers’ fees, introduction fees, and buy-sell spreads. We resent paying for what we see as nothing—nothing in this case just being the person who sits in the middle and takes a seemingly undeserved clipping out of our transactions. We tar real estate agents, stockbrokers, insurance brokers, and other introducers with the brush of being necessary evils. They exist to help make transactions happen by simplifying exchange for the customer and supplier; the downside is that they need to be paid.
These “bad” monetary TxCs get all the attention. Discussions of monetary TxCs rapidly end up in a cul-de-sac view of the future ...
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