Perfect capital market

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The model of perfect capital market in describing neoclassical capital market theory one on assumptions based capital market , it found in the form in this reality does not exist.


The perfect capital market can be traced back to the theory of the perfect market in economics , the premises of which can be adopted in the construction of a perfect capital market, because the capital market represents a sub-market of the market like the goods market .

Both the classics and the neoclassical capital market theory initially assume the ideal-typical state of perfect capital markets. In reality, however, there is a capital market imperfection due to transaction costs , information asymmetries , limited rational behavior, liquidation costs and non- risk-diversified portfolios . Even if there is no perfect capital market in reality, the concept of the perfect capital market is suitable for making connections clear and for gaining knowledge.

Market structure

The capital market is the sub-market of the financial market where the medium and long-term capital requirement meets the capital supply. Market participants are companies in the financial sector , in particular stock exchanges , financial conglomerates , institutional investors , credit institutions , private investors , insurers and companies in the non-banking sector . Trading objects are financial instruments , financing instruments or financial products . The price on the capital market is called interest .


In terms of rational behavior, the perfect capital market describes a fictitious market that has the following characteristics:

From these conditions it follows that a perfectly balanced capital market offers no possibility of arbitrage , it is arbitrage-free . Not all authors agree with the totality of these premises, but only prefer some of them; the list is for the sake of completeness. One speaks of an imperfect capital market (also called imperfect capital market ) if at least one of the preceding assumptions is not fulfilled.


In business administration and economics , a perfect capital market is assumed for various theories or models. For example, the Capital Asset Pricing Model (CAPM) explains the relationship between the expected return and the return risk in the capital market equilibrium for securities traded on a semi-perfect capital market. Also arbitrage pricing theory , the Modigliani-Miller Theorem and the investment theory make use of the premises of a perfect capital market. In addition, this construct is used in macroeconomic analysis, such as in monetary exchange rate theory and Ricardian equivalence .

If the assumption of certain expectations is given up in favor of uncertainty , models arise in particular that result from the existence of asymmetrical information distribution . The Lemons problem investigated by George A. Akerlof , which can also be transferred to capital markets, has become known. The process of price differentiation is generally known in this context . This is used in real capital markets, for example, for credit conditions that are linked to the rating by rating agencies .

Imperfect capital markets

Given certain expectations, different debit and credit interest rates are the most significant case of market imperfections. Investment and financing are then no longer interchangeable at will, but are associated with additional costs, and different alternatives can lead to different payment flows and thus yields that differ from the market interest rate . Furthermore, transaction costs and the influence of the demand side on pricing can be modeled.

The imperfection of the capital market provides an important argument for explaining the existence of banks , because

See also

Individual evidence

  1. Andrei Shleifer, Inefficient Markets: An Introduction to Behavioral Finance ff, 2000, p. 1857
  2. Bernd Rudolph, Corporate Finance and Capital Markets , 2006, p. 47
  3. Bernd Rudolph , Unternehmensfinanzierung und Kapitalmarkt , 2006, p. 28 ff. ISBN 9783161473623
  4. Jochen Gann, International Investment Decisions of Multinational Enterprises , 1996, p. 44 f.
  5. Wolfgang Cezanne, Allgemeine Volkswirtschaftslehre , 10th edition, 2005, p. 156
  6. Arnold Heertje / Heinz-Dieter Wenzel, Basics of Economics , 2001, pp 132 et seq.
  7. Wolfgang Cezanne, Allgemeine Volkswirtschaftslehre , 10th edition, 2005, p. 156
  8. ^ Alfred Eugen Ott, Grundzüge der Price Theorie , 1979, p. 32 ff.
  9. ^ Siegfried G. Häberle, Das neue Lexikon der Betriebswirtschaftslehre , Volume AE, 2008, p. 662
  10. ^ Willi Albers / Anton Zottmann, Concise Dictionary of Economics (HdWW) , Volume 5, 1980, p. 106
  11. Jochen Gann, International Investment Decisions of Multinational Enterprises , 1996, p. 44
  12. ^ Wolfgang Breuer , Investment I: Decisions in Security , Gabler Verlag, 3rd edition, 2007, p. 46, ISBN 9783834905598
  13. ^ Siegfried G. Häberle, Das neue Lexikon der Betriebswirtschaftslehre , Volume AE, 2008, p. 178