Annualized Cost-to-Equity Ratio

Definition

Measure of the rate of return an account must earn on an annual basis to cover transaction costs. An annualized cost-to-equity ratio exceeding 20 percent indicates excessive trading.

Related rules

The related rules section is for members only and includes a compilation of all the rules of law in Quimbee's database relating to this key term. To access the related rules, please start your free trial or log in.

Get full access FREE

With a 7-day free trial membership

Here's why 966,000 law students have relied on our key terms:

A complete online legal dictionary of law terms and legal definitions
Over 8,000 key terms written in plain English to help you not only understand the law but master it
The premier online law dictionary built specifically for law students
Easy access in class or on the go, accessible both online and through the Quimbee mobile app
Reliable - written by legal professors and practitioners
Get instant access to all related rules of law to any specific key term with a Quimbee Study Aids subscription