Frictionless market

From Wikipedia, the free encyclopedia
(Redirected from Market friction)
Jump to navigation Jump to search

In economic theory a frictionless market is a financial market without transaction costs.[1] Friction is a type of market incompleteness. Every complete market is frictionless, but the converse does not hold. In a frictionless market the solvency cone is the halfspace normal to the unique price vector. The Black–Scholes model assumes a frictionless market.[2]

References

[edit | edit source]
  1. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
  2. ^ Lua error in Module:Citation/CS1/Configuration at line 2172: attempt to index field '?' (a nil value).
Stub icon

This finance-related article is a stub. You can help Wikipedia by expanding it.

Retrieved from "http://70.231.62.181/index.php?title=Frictionless_market&oldid=1323678"