 When we are talking about the financial decision-making, it is important to understand the concept of transaction costs. Transaction costs are basically the expenses that are incurred when we buy or sell a good or a service. So, it's not the price of the good or the service. It is the money which you spend in order to buy that particular thing. So, the expenses that are involved, for example, if you want to buy a security or a stock, you will have to pay some fee to the agent through which you are buying the stock. So, that fee that given to the agent will form the transaction cost. So, transaction costs are in financial terms or in terms of financial assets. These are the payments that are made to the banks or any brokers when we are buying any or selling any financial instruments. So, it is important to consider the transaction costs involved when we look at the financial asset, whether we want to buy it or sell it, at what point we are going to buy it or sell it. So, people generally look at the rate of the return or the stock price at that time. And then they decide that this is what we should do, what we should be doing, we should be selling the stock or we should be buying it and they ignore this important component of transaction costs. So, what I am trying to explain here is that we need to take into consideration the transaction costs involved in order to sell or purchase a certain stock at a certain point in time because that can make difference. So, if you are seeing that you might earn by selling a certain stock at a certain on a certain day, you will be able to generate a profit of rupees one per stock, for example, I am just giving you an example. And the transaction if and you have not included the commission or the fee that you are going to pay to the agent. So, maybe if you consider that you might come up with a very small profit which you thought without considering it, you thought that I am going to earn a relatively higher profit. But when you have calculated the difference between after paying the fee to the broker, you come up with nothing. So, therefore it is important to understand the concept of transaction costs, what type of transaction costs are involved in what type of different types of financial assets because there are different asset classes have got different transaction costs. So, that needs to be taken into account whenever any financial decision is being taken and it can have a stronger effect on the overall actual value or the net profits which you are going to generate by selling or purchasing certain financial assets or stocks or securities or any other financial instruments.