A model capital market K is considered as complete, if there are exactly the same many financing titles with linear independent payment vectors, like future environmental conditions.

If one regards the quantity of all payment vectors as vector space, then the regarded capital market is complete if the number of future environmental conditions is equal to the dimension of the vector space, thus the length of each basis of this vector space.

Characteristics

• If a model capital market is complete, then it fulfills also the Spanning condition.
• If a model capital market is complete, then any future payment stream can be produced as linear combination of existing payment stream (e.g. from the basis of the payment vector vector space of this capital market). Such a linear combination of payment stream in the form of linear combination of financing titles is called usually Portfolio.

See also

• Perfect capital market
• Spanning condition

Articles in category "Complete capital market"

We found here 39 articles.

Related Websites

We found here 3 related websites.

• Complete capital market financial definition of Complete capital ...
  Definition of Complete capital market in the Financial Dictionary - by Free online English dictionary and encyclopedia. What is Complete capital market


• Financial dictionary: Complete capital market
  Financial dictionary: Complete capital market - Glossary Complete capital market.


• Financial dictionary: Perfect market view (of capital structure)
  Financial dictionary: Perfect market view (of capital structure) - Glossary Perfect market view (of capital ... Complete capital market · Cost of capital ...