Market Segmentation Theory

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Dictionary Says

Definition of '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.
Investopedia Says

Investopedia explains 'Market Segmentation Theory'

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.
Search results for

'Market Segmentation Theory'

  • Dow Theory: Current Relevance | Investopedia

    http://www.investopedia.com/university/Dowtheory/Dowtheory8.asp
    ... Also of importance in Dow theory is the idea of emotions in the marketplace,
    which remains a characteristic of market trends. Charles ...

  • CFA Level 1 Study Guide - Fixed Income Investments - The Term ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/interest-rate-term-structure.asp
    ... of Risk; 11.18 Risk-Analysis Techniques; 11.19 Security Market Line and ... The Tradeoff
    Theory of Leverage; 11.28 Signaling Prospects Through Financing Decisions; ...

  • 10 Breakout Ideas For Small Businesses

    http://www.investopedia.com/articles/pf/08/small-business-breakout-ideas.asp
    ... small business. This technique also allows the possibility of market
    segmentation under your own or other labels. Idea No. 6 - Build ...

  • Consumer Spending As A Market Indicator

    http://www.investopedia.com/articles/07/retailsalesdata.asp
    ... To gain an overall understanding of the retail market, along with distinguishing
    strengths ... if you want to be very specific in your segmentation, but breaking ...

  • Gauge Portfolio Performance By Measuring Returns

    http://www.investopedia.com/articles/fundamental-analysis/08/performance-analytics-returns.asp
    ... June 27 2010 | Filed Under » Financial Theory, Portfolio Management. Performance ...
    The process for segmentation is simple: just process the market values of ...

  • Coca-Cola: Right Stock, Wrong Reason

    http://stocks.investopedia.com/stock-analysis/2009/Coca-Cola-Right-Stock-Wrong-Reason-KO-PEP-COST-WMT1126.aspx
    ... one marketing approach will be implemented with specific customer segmentation
    (moms, teens ... Coke already owns 51% of the carbonated beverage market, while next ...

  • CFA Level 1 Study Guide - Financial Statements - Management ...

    http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/management-analysis-footnotes.asp
    ... of Risk; 11.18 Risk-Analysis Techniques; 11.19 Security Market Line and ... The Tradeoff
    Theory of Leverage; 11.28 Signaling Prospects Through Financing Decisions; ...

  • The Myths And Realities Of Women In Finance

    http://www.investopedia.com/articles/basics/11/myths-and-realities-gender-finance.asp
    ... 09 2012 | Filed Under » Financial Theory, Investing Basics ... in a specifically female
    customer segmentation, which looks ... the door when investing in the market. ...

  • Don't Catch Tech IPO-itis

    http://stocks.investopedia.com/stock-analysis/moneyshow/DontCatchTechIPO-itis.aspx
    ... Customer segmentation is important. Each customer redeeming a Groupon voucher
    represents a different level of profitability for the local merchant. ...

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