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Capital market imperfections view

• The view that issuing debt is generally valuable but that the firm's optimal choice of capital structure is a dynamic process that involves the other views of capital structure (net corporate/personal tax, agency cost, bankruptcy cost, and pecking order), which result from considerations of asymmetric information, asymmetric taxes, and transaction costs.

 
 

Follow this link for all the terms related to capitalmarket.

 
 Embedded terms in definition
 Agency
Asymmetric information
Asymmetric taxes
Bankruptcy
Capital structure
Capital
Debt
Pecking order
Transaction costs
 
 Related Terms
 
Agency cost view
Auction market
Average cost of capital
Bank market
Bankruptcy cost view
Bankruptcy view
Bear market
Black market
Breadth of a market
Brokered market
Bull market
Bulldog market
Buyer's market
Capital
Capital account
Capital adequacy
Capital allocation decision
Capital appreciation
Capital asset
Capital asset pricing model
Capital budget
Capital budgeting
Capital cost allowance
Capital expenditure
Capital flight
Capital gain
Capital gains yield
Capital impairment rule
Capital lease
Capital loss
Capital market
Capital market efficiency
Capital market line
Capital rationing
Capital stock
Capital structure
Capital surplus
Carrying charge market
Cash market
Change in net working capital
Common market
Common stock market
Complete capital market
Corner a market
Corporate tax view
Cost of capital
Cost of limited partner capital
Crossed market
Currencies and major foreign market hedge funds
Dealer market
Debt capital
Debt market
Debt to capital ratio
Dedicated capital
Depth of a market
Direct search market
Domestic market
Efficient capital market
Efficient market
Efficient market hypothesis
Either way market
Equilibrium market price of risk
Equity capital
Equity market
Eurocurrency loan market
Eurocurrency market
Euroequity market
European open market
Excess return on the market portfolio
Exchange rate risk capital budgeting
External market
Fair market price
Fast market
Federal funds market
Federal open market committee
Financial market
Financial or capital lease
Fixed income market
Flat market
Foreign banking market
Foreign bond market
Foreign equity market
Foreign market
Foreign market beta
Forward market
Fourth market
Futures market
Gigo garbage in, garbage out in capital budgeting
Gray market
Hard capital rationing
Human capital
Index and option market
Inside market
Internal market
Internally efficient market
International equity market
International market
International monetary market
Inverted market
Invested capital
Issued share capital
Legal capital
Locked market
Make a market
Marginal cost of capital
Marginal cost of capital schedule
Mark to market
Marked to market
Market
Market arbitrage
Market book ratio
Market cap or market capitalization
Market capitalization
Market capitalization rate
Market clearing
Market conversion price
Market cycle
Market efficiency hypotheses
Market if touched
Market impact costs
Market maker
Market maker spread
Market model
Market on close
Market on opening
Market order
Market overhang
Market portfolio
Market premium convertible securities
Market price of risk
Market prices
Market return
Market risk
Market risk return function
Market sectors
Market segmentation theory or preferred habitat theory
Market stabilization
Market surveillance
Market timer
Market timing
Market timing costs
Market to book ratio
Market value
Market value ratios
Market value weighted index
Market value weights
Marking to market
Matador market
Money market
Money market center bank
Money market certificates
Money market demand account
Money market fund
Money market hedge
Money market mutual funds
Money market notes
National market
Net working capital
Net working capital recapture
New issues market
Nondiversifiability of human capital
Normal market
One sided one way market
One way market
Open market operation
Open market purchase operation
Open market share repurchases
Operationally efficient market
Opportunity cost of capital
Optimal capital structure
Otc market
Other capital
Outstanding share capital
Over the counter market
Over the counter otc market
Pecking order view of capital structure
Perfect capital market
Perfect market view of capital structure
Perfect market view of dividend policy
Personal tax view of capital structure
Pie model of capital structure
Planned capital expenditure program
Primary market
Pro forma capital structure analysis
Ratio of exchange in market price
Real capital
Real market
Real options capital budgeting
Regulatory capital
Rembrandt market
Risk capital budgeting
Samurai market
Secondary market
Security market line
Security market plane
Seller's market
Side of the market
Signaling view on dividend policy
Soft capital rationing
Sophisticated approaches to capital budgeting
Specific issues market
Spot market
Static theory of capital structure
Stock market
Taking a view
Target capital structure
Tax differential view of dividend policy
Taxable capital gain
Technical condition of a market
Thin market
Third market
Tight market
Total capital
Traditional view of dividend policy
Two sided market
Two way market
Underlying market price
Uniform net capital rule
Upstairs market
Venture capital
Weighted average cost of capital
Working capital
Working capital management
Working capital ratio
Yankee market

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