Perfect competition
An idealized market environment in which every market participant is too small to affect the market price by acting on its own. |
Similar financial terms
Perfected first lienA first lien that is duly recorded with the cognizant governmental body so that the lender will be able to act on it should the borrower default.
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 the following conditions: a) trading is costless, and access to the financial markets is free, b) information about borrowing and lending opportunities is freely available, c) there are many traders, and no single trader can have a significant impact on market prices.
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 in a perfect capital market.
Perfect market view (of capital structure)
Analysis of a firm's capital structure decision, which shows the irrelevance of capital structure in a perfect capital market.
Perfect hedge
A financial result in which the profit and loss from the underlying asset and the hedge position are equal.
Perfect capital market
A market in which there are never any arbitrage opportunities.
Capital market imperfections view
The view that issuing debt is generally valuable but that the firm's optimal choice of capital structure is a dynamic process that involves the other views of capital structure (net corporate/personal tax, agency cost, bankruptcy cost, and pecking order), which result from considerations of asymmetric information, asymmetric taxes, and transaction costs.
Competition
Intra- or intermarket rivalry between businesses trying to obtain a larger piece of the same market share.
