Perfectly competitive financial markets(redirected from Perfectly Competitive Financial Market)
Perfectly competitive financial markets
Markets 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 cost less, 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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Perfectly Competitive Financial Markets
Markets with perfect competition. That is, no single trade can affect prices and all trades are costless. This makes the market accessible to the widest possible number of participants. Perfectly competitive financial markets can only occur when all information is accessible to all market participants. See also: Efficient markets theory.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved