Section: 3 Costs Attached to Investments in Stocks
It should be noted that there are transaction costs charged by brokers when
calculating return. In addition, in developed markets taxation is levied on
investment income. All such expenses relating to stock investment should be
deducted from the return in order to arrive at the true profit.
Transaction cost differs from country to country. Approximately the broker charges 1% of the investment value as brokerage.