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» Financing » Topics begins with C » Competitivity condition


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A capital market fulfills the Competitivity condition exactly then,

  • if the choice of a capital budget and/or an offer or a demand of financing titles on this capital market leads to no price influence of other financing titles.

Material capital markets do not fulfill this condition typically, but for some capital markets and for some financing titles assumed that actions with them lead to no nenennswerten price influence, therefore for this case the Competitivity condition approximately fulfilled is.

See also: Spanning condition


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