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1. Are transaction costs new costs?

According to what I have read and understood, transaction costs being news costs is
just a myth. Based on Morgan, JP, the transaction costs disclosed under MiFID II are
not a new additional cost. Since they are involved in fund management and are
completely reflected in net returns, they must be fully reported and expressed in
percentage and monetary terms for the first time.

2. Does low transaction cost indicate a better investor outcome?

According to JP Morgan, when evaluating the results of an investment in a fund,
performance after fees must be considered. Even while a fund with infrequent
transactions may have minimal transaction costs, its strategy might be geared toward
generating relatively small returns. A different fund, on the other hand, can experience
higher transaction costs in order to produce larger long-term returns.
3. Does disclosing transaction costs makes competitor comparisons
easier?
According to JP Morgan, it would be a good idea to encourage fund managers to look
for ways to lower trading expenses by disclosing transaction costs. However,
investors may be misled and confused by the very varied basis on which expenses
can currently be estimated, which may actually make fund comparisons more difficult.
4. What is MiFID II?
MiFID II is the second Market in Financial Instruments Directive. According to JP
Morgan, it is a financial legislation that applies to all of the EU's financial markets and
is intended to provide stronger investor protection, increase market transparency,
enhance orderly trading behavior, and make trading and investing expenses more
transparent.
5. What is the trading break-even calculation?
According to JP Morgan, using the target and stop-loss settings for the specific
trading strategy, the break-even percentage is determined. Target and stop-loss
levels can be expressed in ticks for futures, pips for FX, cents for stocks, or monetary
values. The number of profitable trades necessary for a break-even scenario is
determined by the computation and is displayed as a percentage.
Calculation: (Stop-Loss / (Target + Stop-Loss)) x 100
6. What are the minimum number of shares you can buy?
In essence, there is no requirement that you purchase a minimum of one share, and
the company or brokerage accurately tracks ownership percentages. According to
Investopedia, the term "fractional share" refers to an equity share that is less than
ROSALES, NICOLLE S.

one complete share and is frequently the consequence of a stock split, dividend
reinvestment plan (DRIP), or other similar corporate activity.
7. Differentiate bullish from bearish market.
A bear market happens when stocks fall steadily over time, whereas a bull market
happens when stocks are rising. Additionally, an investor who is bullish acts on the
assumption that prices will rise, whereas a pessimistic investor assumes the
opposite.