Market Segmentation Theory
- Market Segmentation Theory
- A modern theory pertaining to interest rates stipulating that there is no necessary relationship between long and short-term interest rates. Furthermore, short and long-term markets fall into two different categories. Therefore, the yield curve is shaped according to the supply and demand of securities within each maturity length.
Also called the "Segmented Markets Theory", this idea states that most investors have set preferences regarding the length of maturities that they will invest in. Market segmentation theory maintains that the buyers and sellers in each of the different maturity lengths cannot be easily substituted for each other. An offshoot to this theory is that if an investor chooses to invest outside their term of preference, they must be compensated for taking on that additional risk. This is known as the Preferred Habitat Theory.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
Market segmentation theory or preferred habitat theory — 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. The New York Times Financial Glossary … Financial and business terms
market segmentation theory or preferred habitat theory — 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. Bloomberg Financial Dictionary … Financial and business terms
Market segmentation — Marketing Key concepts Product marketing · Pricing … Wikipedia
Labor market segmentation — OverviewLabor Market Segmentation is classified as the core, neo classical economic theory, this economic system sees a market labor which consists of buyers and sellers in open competition with each other;which functions in the same way as other … Wikipedia
labour-market segmentation — In essence, neo classical economic theory sees a market for labour, with buyers and sellers in open competition with each other, which functions in broadly the same way as other markets. There are differences of course. It is recognized that… … Dictionary of sociology
Industrial market segmentation — is a scheme for categorizing industrial and business customers to guide strategic and tactical decision making, especially in sales and marketing. While government agencies and industry associations use standardized segmentation schemes for… … Wikipedia
labour-market — In a labour market, human effort (or labour power) is made into a commodity, which is bought and sold under terms which in law are deemed to constitute a contract. The purchase and sale of formally free labour developed extensively with… … Dictionary of sociology
Redshift (theory) — Redshift is a techno economic theory suggesting hypersegmentation of Information Technology (IT) markets based on whether individual computing needs are over or under served by Moore s Law, which predicts the doubling of computing transistors… … Wikipedia
Development of Darwin's theory — Following the inception of Charles Darwin s theory of natural selection in 1838, the development of Darwin s theory to explain the mystery of mysteries of how new species originated was his prime hobby in the background to his main occupation of… … Wikipedia
Теория сегментации рынка — (MARKET SEGMENTATION THEORY) одно из объяснений зависимости процентных ставок от сроков. Считается, что различные инвесторы и кредиторы исходят из законов, собственных предпочтений и привычек к определенным срокам вложений. Текущие ставки в… … Финансовый глоссарий
