Perfect market Vs Imperfect Market..pptx

The stock market is a marketplace where buyers and sellers trade shares (stocks) of publicly listed companies. It acts as a platform for companies to raise capital and for investors to earn returns by buying and selling these shares.
In simple terms, the stock market is where ownership in companies is bought and sold

1. Perfect Market Vs Imperfect Market Dr.Lavanya M.R Assistant Professor Sri Ramakrishna College of Arts and Science

2. Perfect Market Imperfect Market 1.Definition A market where all conditions of perfect competition are fully satisfied A market where one or more conditions of perfect competition are not met. 2.Number of Sellers and Buyers Very large number of buyers and sellers; none can influence price. Few or single sellers/buyers who can influence prices. 3.Homogeneity of Product Products are identical and perfect substitutes. Products are differentiated or heterogeneous.

3. Perfect Market Imperfect Market 4.Freedom of Entry and Exit No barriers for firms to enter or exit the market. Barriers exist preventing easy entry or exit. 5.Perfect Information Complete and perfect knowledge about prices and products is available to all. Information is asymmetric or imperfect; some know more than others. 6.Price Determination Price is determined solely by market forces of demand and supply; firms are price takers. Sellers or buyers have some control over price; firms may be price makers.

4. Perfect Market Imperfect Market 7.Control over Price No control; price takers Have control; price makers (monopolists, oligopolists) 8.Efficiency High (allocative and productive) Low or moderate 9.Consumer Choice Unlimited Limited