A resource hub for understanding the various costs that eat into your investment returns. Explore articles on expense ratios, exit loads, brokerage charges, sunk costs, carrying costs, and how to minimise total cost of investing.
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Terms
Carrying Cost
Carrying cost refers to the total expense a business incurs to hold and maintain inventory over a period of time. It includes storage expenses, the cost of capital tied up in stock, insurance, taxes, depreciation, and the risk of inventory becoming damaged or obsolete.
Business Fundamentals
Cost Concepts
+ 1
Securities Transaction Tax (STT)
STT (Securities Transaction Tax) is a tax levied by the Government of India on the purchase or sale of securities listed on the recognised stock exchanges. STT is a direct cost that eats into traders' profits.
Cost Concepts
Taxation
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Sunk Cost
A sunk cost is an expense that has already been incurred and cannot be recovered, regardless of future outcomes. It represents money or resources spent on past decisions, such as investments in a failed project or outdated equipment. Since sunk costs cannot be changed, they should not influence future business or investment decisions; only potential future costs and benefits should matter.
Business Fundamentals
Cost Concepts
+ 1