[Verse 1] You built a perfect portfolio on paper, looking fine Expected returns were dancing in a straight and perfect line But when you went to trade it, something didn't feel quite right The real world started showing you a very different sight Your paper said ten percent, but you only made eight-two Where did those returns go? Let me explain to you Implementation shortfall is the gap you need to see Between your paper dreams and your reality [Chorus] Market Impact, Timing Risk, Delay and Opportunity Missed Trade Cost rounds out the four-part symphony When paper meets the trading floor, these costs will always show Implementation Shortfall - now you're in the know [Verse 2] Market Impact hits you when your order moves the price Buy a stock, it jumps right up, that premium's not so nice When you sell, it falls right down, you get less than you planned Supply and demand responding to your heavy trading hand The bigger that your order is, the bigger impact grows Like dropping stones in quiet ponds, the ripple always shows Temporary or permanent, these costs are always there Implementation shortfall makes the hidden costs aware [Chorus] Market Impact, Timing Risk, Delay and Opportunity Missed Trade Cost rounds out the four-part symphony When paper meets the trading floor, these costs will always show Implementation Shortfall - now you're in the know [Verse 3] Timing Risk and Delay Costs work hand in hand together Markets move while you're deciding, fair or stormy weather From decision to execution, prices drift away Every minute that you wait might cost you more to pay And when you miss that trade completely, Opportunity's the name The cost of what you didn't do, it's part of the same game Your benchmark keeps on moving while your cash just sits around These four components show you where your alpha can be found [Chorus] Market Impact, Timing Risk, Delay and Opportunity Missed Trade Cost rounds out the four-part symphony When paper meets the trading floor, these costs will always show Implementation Shortfall - now you're in the know [Bridge] Paper portfolio, so clean and bright Real world trading, brings costs to light Measure the difference, make it clear Implementation costs appear [Outro] From paper dreams to trading floors Four costs are waiting at the doors Implementation shortfall shows The gap between what's planned and what really goes
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