Perfect capital market

Perfect capital market
Definition: [crh] A market in which there are never any arbitrage opportunities.

Perfect capital market
A market in which there are never any arbitrage opportunities.
Put-call parity relationship ...

Perfect capital markets enjoy an array of assumptions, including no cost to bankruptcy, infinitely divisible financial assets and liabilities, no transaction costs, etc.

Perfect capital market
A market in which there are never any arbitrage opportunities.
Perfect competition ...

perfect capital market A market without any arbitrage opportunities. perfect competition A type of market in microeconomic theory in which no single firm has market control over prices.

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, ...

Perfect capital market
Perfect Competition
Perfect forecast line
Perfect hedge
Perfect market assumptions
Perfect market view
Perfect market view (of capital structure
Perfect market view (of dividend policy
Perfected first lien ...

Capital market money market?
Perfect capital market view of capital market?
What is market capital?
Is share market is capital market?
» More ...

^ J. Miles und J. Ezzell. "The weighted average cost of capital, perfect capital markets and project life: a clarification." Journal of Financial and Quantitative Analysis, 15 (1980), S. 719-730.

In their seminal paper, Miller and Modigliani showed that under certain assumptions (perfect capital market, rational behavior, and perfect certainty), dividends are irrelevant. All that matters is the firm's investment opportunities.

See also: Capital structure, Expected return, Capital markets, Transaction costs, Banks