The cost of investing on the Paris Stock Exchange is divided into a transaction cost (including: explicit fees paid to financial intermediaries, implicit liquidity cost and financial taxes) and investing fees (mainly management fees). The objective of the paper is to describe, assess and estimate these different components. Portfolios with different characteristics (amount invested, number of assets, market price and trading strategies) are considered. We find that the global cost of an investment particularly depends on the quoted price of a unit invested share. This result suggests the existence of an optimal range for the market price. It may have some economic implications for firms, investors and financial intermediaries.
CHEVALLIER, A. and LONGIN, F. (1999). Coût d'investissement à la Bourse de Paris. ESSEC Business School.