Market segmentation theory or preferred habitat theory

• Theory suggesting that the market for loans is segmented on the basis of maturity and that the sources of supply and demand for loans within each segment determine its prevailing interest rate; the slope of the yield curve is determined by the general relationship between the prevailing rates in each segment.

• A biased expectations theory that asserts that the shape of the yield curve is determined by the supply of and demand for securities within each maturity sector.


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 Embedded terms in definition
Interest rate
Yield curve
 Related Terms
Adjustable rate or floating rate preferred share arps
Adjustable rate preferred stock
Agency theory
Arbitrage pricing theory
Auction market
Auction rate preferred stock
Bank market
Bear market
Black market
Breadth of a market
Brokered market
Bubble theory
Bull market
Bulldog market
Buyer's market
Call price preferred
Capital market
Capital market efficiency
Capital market imperfections view
Capital market line
Carrying charge market
Cash market
Common market
Common stock market
Complete capital market
Convertible exchangeable preferred stock
Convertible preferred
Convertible preferred shares
Convertible preferred stock
Corner a market
Cost of preferred stock
Crossed market
Cumulative preferred
Cumulative preferred stock
Currencies and major foreign market hedge funds
Dealer market
Debt market
Depth of a market
Direct search market
Dividend irrelevance theory
Dividend relevance theory
Domestic market
Dutch auction preferred shares
Efficient capital market
Efficient market
Efficient market hypothesis
Either way market
Equilibrium market price of risk
Equity market
Eurocurrency loan market
Eurocurrency market
Euroequity market
European open market
Excess return on the market portfolio
Expectations theory of forward exchange rates
External market
Fair market price
Fast market
Federal funds market
Federal open market committee
Financial market
Fixed income market
Flat market
Floating rate preferred
Foreign banking market
Foreign bond market
Foreign equity market
Foreign market
Foreign market beta
Forward market
Fourth market
Futures market
Gray market
Index and option market
Inside market
Internal market
Internally efficient market
International equity market
International market
International monetary market
Inverted market
Liquidity preference theory
Liquidity theory of the term structure
Local expectations theory
Locked market
Make a market
Mark to market
Marked to market
Market arbitrage
Market book ratio
Market cap or market capitalization
Market capitalization
Market capitalization rate
Market clearing
Market conversion price
Market cycle
Market efficiency hypotheses
Market if touched
Market impact costs
Market maker
Market maker spread
Market model
Market on close
Market on opening
Market order
Market overhang
Market portfolio
Market premium convertible securities
Market price of risk
Market prices
Market return
Market risk
Market risk return function
Market sectors
Market stabilization
Market surveillance
Market timer
Market timing
Market timing costs
Market to book ratio
Market value
Market value ratios
Market value weighted index
Market value weights
Marking to market
Matador market
Modern portfolio theory
Money market
Money market center bank
Money market certificates
Money market demand account
Money market fund
Money market hedge
Money market mutual funds
Money market notes
Monthly income preferred security
National market
New issues market
Non cumulative preferred stock
Noncumulative preferred stock
Nonparticipating preferred stock
Normal backwardation theory
Normal market
Odd lot theory
One sided one way market
One way market
Open market operation
Open market purchase operation
Open market share repurchases
Operationally efficient market
Otc market
Over the counter market
Over the counter otc market
Participating preferred stock
Perfect capital market
Perfect market view of capital structure
Perfect market view of dividend policy
Portfolio theory
Preferred dividends
Preferred equity ratio
Preferred equity redemption stock
Preferred habitat theory
Preferred shares
Preferred stock
Preferred stock agreement
Primary market
Pure expectations theory
Random walk theory
Ratio of exchange in market price
Real market
Rembrandt market
Residual theory of dividends
Samurai market
Secondary market
Security market line
Security market plane
Seller's market
Side of the market
Specific issues market
Spot market
Static theory of capital structure
Stock market
Straight preferred shares
Technical condition of a market
Theory of cross hedging
Theory of hedging
Thin market
Third market
Tight market
Two sided market
Two way market
Underlying market price
Upstairs market
Yankee market

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