Perfect market assumptions

Definition:

Conditions under which the law of one price holds. The assumptions include frictionless markets, rational investors, and equal access to market prices and information.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Heavy

An equities market now dominated by sellers, or oversupply, resulting in falling prices. See: Overbought, resistance level, tired.

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