Investing Feeds

In all of the theory which I have covered in my articles I have often referred to a perfect market, or perfect conditions. It is important that potential investors understand what is meant by Perfect Market in relation to theory. A perfect market has two sides, first the companies or entities involved in the market would behave in a mathematically perfect way in terms of investment and financing, they would all utilize NPV analysis to make decisions and would subscribe to Fishers normative function of maximizing shareholder wealth. Secondly Investors would act in a perfect way by also utilizing NPV to make decisions about investing and financing decisions. [Read more]