the stock market is very close to a perfect competitive market.
the stock market is very close to a perfect competitive market. the price of a stock usually is determined by the market forces and the supply of the stock and individual buyers & sellers of the stock have little effect on price (they are price takers). resources are mobile as stock is bought and sold frequently. information about prices and quantities is readily available. funds flow into stocks and resources flow into uses in which the rate of return. thus stock prices provide the signal for efficient allocation of investment in the economy. however , imperfections occur here also though the stock market is very close to perfect competition, for example, sale of huge amount of stockd by a large corporation will certainly affect (depress) price of its stocks.Q. Find out the characteristic of National Stock Exchange
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