Alaska Permanent Fund Corporation, hypothetically, enacted the following requests and stock purchases:
1. Alaska Permanent Fund Corporation (APFC) equity manager indicates to their broker a market order of
- 20,000 shares of Cisco Systems, Inc., at the current price of $30.54; and
- 100 shares of the Boyd Gaming Corp. at the current price of $20.32.
2. The trade desk releases
- 10,000 shares of Cisco now at $31.23 and
- cannot immediately find a seller of the shares for Boyd Gaming Corp.
3. The APFC broker buys
- 10,000 shares of Cisco Systems, now at $31.54 with a commission of 0.04 per share.
4. A day later, the trade desk found a seller of Boyd Gaming Corp. stock and releases
- 50 shares of Boyd Gaming at the current price of $20.03, and also
- 10,000 shares of Cisco Systems at $31.05
5. The APFC broker buys
- 50 shares of Boyd Gaming Corp., now at $20.15 with a commission of 0.04 per share,
- 4,000 shares of Cisco Systems, now at $31.75 with a commission of 0.04 per share, and
- Cancels the additional 6,000 shares of Cisco Systems in the original order.
6. A week later, current prices for now 14,000 shares of Cisco and 50 shares of Boyd are as follows, consequently:
- $36.61; and
- $19.76.
Evaluate the transaction cost name and attributes of the trades shown, including whether the trades are to the advantage or disadvantage of the Alaska Permanent Fund Corporation.