The cost of transacting in the Jordanian capital market

الملخص EN

This paper provides a measure of transaction costs in the Amman Stock Exchange (ASE) and examines its determinants.

After discussing the economic importance of financial systems in general and stock markets in particular, this paper argues that transaction costs are an essential prerequisite for stock markets in fulfilling their economic roles.

Based on the statistical analysis, it is concluded that transaction costs in ASE are relatively high and that trading volume and price volatility are major determinant factors of this cost.