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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 MatchesCapital 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. Market imperfectionMarket imperfectionAny departure from the ideal benchmark of perfect competition, due to externalities, taxes, market power, etc. Expected value of perfect informationExpected value of perfect informationThe expected value if the future uncertain outcomes could be known minus the expected value with no additional information. 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. Perfectly competitivePerfectly competitiveRefers to an economic agent (firm or consumer), group of agents (industry), model, or analysis that is characterized by perfect competition. Contrasts with imperfectly competitive. Further SuggestionsPerfectly elasticPerfecting Title Imperfect competition Perfect substitute Perfect forecast line Perfect foresight Perfectly mobile capital Perfect competition Perfect hedge Perfect market assumptions Perfect competition Perfect capital mobility Imperfectly competitive Perfect market view (of dividend policy) Imperfect market Perfected first lien |
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