Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,899,417,453 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Perfect Market Assumptions

    0.02 sec.
Perfect market assumptions
Conditions under which the law of one price holds. The assumptions include frictionless markets, rational investors, and equal access to market prices and information.
Perfect Market Assumptions
The assumptions under which a market or an economy is entirely efficient. Perfect market assumptions include equal access to information by all market participants, completely rational economic actors, and no transaction costs (such as taxes). Perfect market assumptions rarely, if ever, hold true in the real world.
Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link 		Feedback
Add definition
Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
No references found
 
The Efficient Capital Market Hypothesis (ECMH) also builds on perfect market assumptions.
MOME in hindsight: how has "The Mechanisms of Market Efficiency" ... by Gilson, Ronald J.; Kraakman, Reinier / Regulation
Given the role of liquidity in the performance of portfolio insurance in the crash of 1987 and in the collapse of LTCM, it has perhaps revealed itself as the Achilles' heel of finance built on perfect market assumptions.
Merton Miller and Modern Finance by Stulz, Rene M. / Financial Management
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.