PLEASE NOTE
Capital Ideas is now Chicago Booth Review but unfortunately original articles are no longer available. If you click through you will be taken to the Internet Archive site to find an archived copy.
Capital Ideas is now Chicago Booth Review but unfortunately original articles are no longer available. If you click through you will be taken to the Internet Archive site to find an archived copy.
According to the law of one price, identical assets should have identical prices. Driving this law is arbitrage, in which an investor buys and sells the same security for two different prices to make a profit. In a well functioning capital market, arbitrage prevents the law of one price from being broken, and in fact, violations of the law are rarely seen.
Content: Article
Authors: Owen A. Lamont, Richard H. Thaler
Source: “Capital Ideas”
Subjects: Finance, Industry Specific
Industry: Investment Banking
Authors: Owen A. Lamont, Richard H. Thaler
Source: “Capital Ideas”
Subjects: Finance, Industry Specific
Industry: Investment Banking
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