answersLogoWhite

0

In a way, stock markets are an example of perfect competition. There are hundreds of buyers and sellers. When buying shares you can choose from innumerable different brokers. ... There are few barriers to entry and exit; anybody can buy shares if they have enough money.

User Avatar

frenzyhome

Lvl 4
3y ago

What else can I help you with?

Continue Learning about Economics

Does Indian Stock Market explain perfect competition?

no


To what extent does perfect competition exist n reality?

It doesn't. there is no such thing as perfect competition. who will know everything about a product if he/she doesn't go research? how can there be totalhomogeneousproduct for sale without differentiation (e.g china soya bean, US soya bean).Some market structure however do exhibit such system like stock market where you can easily get your hands on all the information required online.


Any present or past examples for Monopoly and perfect competition?

Petrol Bunks are best example for perfect competition.The reason is all sellers sell same product with same price .The product differences if any is also same (like ordinary petrol /diesel & extra premium petrol /Diesel) Stock market also exhibits perfect competition. In oligopoly market there are different sellers with product differential being wide in terms of technology & price. E.G, Mosquito repellents ,where cotton nets with repellent coating, coils, electronic repellents, repellent frequency sound wave repellents are seen in markets .Buyers who are rich will buy costly repellents & others will buy low priced items. Monopoly market represent single seller & many buyers. LIC India enjoyed for many years monopoly in Life Insurance market. Railways in India is monopoly controlled by Central Government Railway Ministry . similarly petroleum product distribution is dealt by Petroleum ministry. Oil & Natural Gas Commission is having monopoly. Any producer with break through technology offers a product or service having no competitors enjoys monopoly. For sometime Maruti Udyog Ltd enjoyed monopoly over their spare parts.


Is stock exchange an example of perfectly competitive market?

Yes


How does the buying and selling of stock fit the model for perfect competition?

Transacting stocks is a competitive system in which firms produce a homogenous product for a large number of buyers.

Related Questions

Can you find some basic aspect of perfect competition which is essentially absent in stock market?

yes indian stock market perfect competition in market


Does Indian Stock Market explain perfect competition?

no


An example of a financial market?

Stock Market.


To what extent does perfect competition exist n reality?

It doesn't. there is no such thing as perfect competition. who will know everything about a product if he/she doesn't go research? how can there be totalhomogeneousproduct for sale without differentiation (e.g china soya bean, US soya bean).Some market structure however do exhibit such system like stock market where you can easily get your hands on all the information required online.


Any present or past examples for Monopoly and perfect competition?

Petrol Bunks are best example for perfect competition.The reason is all sellers sell same product with same price .The product differences if any is also same (like ordinary petrol /diesel & extra premium petrol /Diesel) Stock market also exhibits perfect competition. In oligopoly market there are different sellers with product differential being wide in terms of technology & price. E.G, Mosquito repellents ,where cotton nets with repellent coating, coils, electronic repellents, repellent frequency sound wave repellents are seen in markets .Buyers who are rich will buy costly repellents & others will buy low priced items. Monopoly market represent single seller & many buyers. LIC India enjoyed for many years monopoly in Life Insurance market. Railways in India is monopoly controlled by Central Government Railway Ministry . similarly petroleum product distribution is dealt by Petroleum ministry. Oil & Natural Gas Commission is having monopoly. Any producer with break through technology offers a product or service having no competitors enjoys monopoly. For sometime Maruti Udyog Ltd enjoyed monopoly over their spare parts.


Is stock exchange an example of perfectly competitive market?

Yes


What is the difference between a stock exchange and the nasdaq stock market?

The NASDAQ is a stock exchange.It would be like NASDAQ is to Stock Exchange as Yankees is to Baseball Team.The term STOCK MARKET generally is used to describe a group of exchanges, but that is a loose usage.For example, a friend my say, "I work on the Stock Market" or "At the Stock Market", but saying I work on the NASDAQ gives you more specific info on exactly what exchange on the Stock Market.


Why would it be important to track what happens in the stock market today?

Checking the stock market today will help inform about businesses one is interested in purchasing stock from. For example, if the stock market says a business is doing well and stock prices are trending up, one may have good luck in purchasing stock from them.


What is the market value of a firm?

The stock price multiplied by the number of stock shares outstanding. for example if there are a million shares of stock and the the price is 1 dollar per share then the market value is one million


Example of volatile?

An example of something being volatile is the stock market. Volatile means that there can be sudden or extreme changes.


What is a ticker with a stock?

A stock ticker is the set of letters, usually three or four long, that represent a particular companies stock on the market. For example, Microsoft's stock ticker is MSFT.


What type of stock exchange is NASDAO?

NASDAQ is a stock market whereby stocks are purchased by dealers to one another and to the general public. The "market" relies on the Internet, there is no "trading floor" as with the New York Stock Exchange for example.