Open Markets
Authors: Donghan Kim
Abstract: An open market is a subset of an entire equity market composed of a certain fixed number of top capitalization stocks. Though the number of stocks in the open market is fixed, the constituents of the market change over time as each company's rank by its market capitalization fluctuates. When one is allowed to invest also in the money market, the open market resembles the entire 'closed' equity market in the sense that the equivalence of market viability (lack of arbitrage) and the existence of numeraire portfolio (portfolio which cannot be outperformed) holds. When access to the money market is prohibited, some topics such as Capital Asset Pricing Model (CAPM), construction of functionally generated portfolios, and the concept of the universal portfolio are presented in the open market setting.
Explore the paper tree
Click on the tree nodes to be redirected to a given paper and access their summaries and virtual assistant
Look for similar papers (in beta version)
We compare the title and abstract with papers indexed in our database. For arXiv papers, we search within the same category; for DOI and other sources, we search across sources and subjects. You can rerun the search as our database grows.