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Conference Proceedings (1999), Actes de la conférence de l'AFFI, Université d'Aix-en-Provence, pp. 1-25

Coût d'investissement à la Bourse de Paris

CHEVALLIER A., LONGIN François

The cost of investing on the Paris Stock Exchange presents different components: trading costs (including the explicit fees paid to financial intermediaries, the cost due to market imperfections and financial taxes) and management costs (including fees for particular financial operations and account fees). The objective of this research is to describe, assess and estimate the different components of the investing cost. We consider portfolios with different characteristics (amount invested, trading strategies, market price of an asset share, and number of assets in the portfolio). We find that the cost of an investment particularly depends on the quoted price of a unit invested share. This implies the existence of an optimal range for the market price. This result has many implications for market participants (investors, firms, financial intermediaries and the Exchange itself).

CHEVALLIER, A. and LONGIN, F. (1999). Coût d'investissement à la Bourse de Paris. In: Actes de la conférence de l'AFFI. Université d'Aix-en-Provence, pp. 1-25.