Business and Personal Finance Dictionary

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• 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.
  
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