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General TradingS
Stamp Duty
A government tax levied on the purchase of financial instruments such as stocks, bonds, or property. In trading, stamp duty increases the cost of buying securities and can influence market liquidity and investor behavior.
Example
“UK investors pay 0.5% stamp duty on share purchases, so buying £10,000 worth of FTSE stocks incurs a £50 tax that must be factored into the total cost of the trade.”