Two stock market based costs of liquidity that affects the cost of capital are the:

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The bid-ask spread is the difference between the highest price a buyer is willing to pay for a stock (bid) and the lowest price a seller is willing to accept for that stock (ask). The market impact cost refers to the cost incurred when a large order is executed in the market, which can cause the price of the stock to move against the investor. Both of these costs affect the cost of capital for investors, as they increase the cost of buying and selling stocks and can decrease potential returns.

Two Stock Market Based Costs of Liquidity That Affects the Cost