Question

Can you find some basic asoect if perfect competition which is essentially absent in stock market?

Answer 1

Explanation:

An essential aspect of perfect competition is the absence of any monopolistic element. These are the three essential features of perfect competition: The number of buyers and sellers in the market is very large. These buyers and sellers compete among themselves

Answer 2

Perfect competition is absent in Stock Markets

Explanation:

Let us understand the basics of stock markets  :

1. The stock market has different companies whose shares have different price depending upon the financials of the company like profits and sales.

2 . Companies may be manipulating the prices of their shares to present a healthy outlook of the company.

3. The stakeholders of the company like financial institutions, promoters , large shareholders may also be colluding.

Thus the Stock Market is not an example of perfect competition , it is an example of Monopolistic competition.