Financial equilibrium
Revision as of 10:05, 28 October 2019 by Gary (talk | contribs) (Created page with "Financial equilibrium (or, simply, equilibrium) is the condition under which the intrinsic value of a security is equal to its price; also, when a security's expected...")
Financial equilibrium (or, simply, equilibrium) is the condition under which the intrinsic value of a security is equal to its price; also, when a security's expected return is equal to its required return.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Equilibrium. The condition under which the intrinsic value of a security is equal to its price; also, when a security's expected return is equal to its required return.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
