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Causes and Consequences of an Imperfect Market

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Imperfect market conditions exist in the real-world of corporate finance. Describe one cause and its accompanying consequence to an imperfect market. Is there anything that can be done to eliminate the cause you have described?

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This solution discusses imperfect market conditions. I discuss one cause and its accompanying consequence to an imperfect market, and if there is anything that can be done to eliminate the causes identified.

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In a perfect market, no buyer or seller has the power to influence others into their investment purchases. This is one of the main characteristics of a perfect market. In reality, there is no such thing as a perfect market. Markets are therefore imperfect, and this is the main reason why, although there are additional, smaller reasons. ...

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