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Perfect capital market |
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Perfect capital marketA market in which there are never any arbitrage opportunities.Perfect capital market Similar MatchesPerfect market view (of dividend policy)Perfect market view (of dividend policy)Analysis of a decision on dividend policy, in a perfect capital market environment, that shows the irrelevance of dividend policy. Perfect hedgePerfect hedgeA situation in which the profit and loss from the underlying asset and the hedge position are equal. Imperfectly competitiveImperfectly competitiveRefers to an economic agent (firm or consumer), group of agents (industry), model, or analysis that is characterized by imperfect competition. Contrasts with perfectly competitive. Perfectly competitive financial marketsPerfectly competitive financial marketsMarkets in which no trader has the power to change the price of goods or services. Perfect capital markets are characterized by certain conditions: (1) Trading is costless, and access to the financial markets is free; (2)information about borrowing and lending opportunities is freely available; and (3) there are many traders, and no single trader can have a significant impact on market prices. Capital market imperfectionCapital market imperfectionAnything that interferes with the ability of economic agents to borrow and lend as much as they wish at a fixed rate of interest that truly reflects probability of repayment. A common source of imperfection is asymmetric information. Further SuggestionsPerfect competitionPerfect substitute Perfect competition Imperfect competition Market imperfection Imperfect market Perfect market assumptions Perfecting Title Perfect forecast line Perfect foresight Perfect capital mobility Perfectly competitive Expected value of perfect information Perfected first lien Perfectly elastic Perfectly mobile capital |
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