Spanning condition
A model capital market satisfies the Spanning condition ( German approximately chuck -Bedingung ) if
- if any introduction of a specific financing instrument or financing model on the model capital market does not enable any new products to be purchased,
- (So in the language of business administration :) if the amount of purchasable consumer items is not expanded by any capital budget .
- In other words, all types of payment flows that are traded on the model capital market after the introduction of a new financing instrument or financing model , and that were also traded there before.
This condition is called the spanning condition, because from a formal point of view, the existing financial stocks on the capital market "span" a vector space.
properties
- If a capital market is complete , it also fulfills the spanning condition.
See also
Individual evidence
- ↑ Ralf Ewert and Alfred Wagenhofer. Internal company accounting. Berlin: Springer, 2008. p. 226.