Frictionless market

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In economic theory a frictionless market is a financial market without transaction costs.[1] Friction is a type of market incompleteness. Every complete market is frictionless, but the converse does not hold. In a frictionless market the solvency cone is the halfspace normal to the unique price vector. The Black-Scholes model assumes a frictionless market.[2]

References

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  2. ↑ Lua error in package.lua at line 80: module 'strict' not found.

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