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Investing Glossary:
Perfectly competitive financial markets
Copyright 2009,
Campbell R. Harvey. All Rights Reserved.
Do not reproduce without explicit permission.
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| Term: |
| Perfectly competitive financial markets
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| Definition: |
| 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 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.
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