This means that once the transfer agents at the bank medallion stamp the bond, it is highly liquid on the second market. Thus, a bond is a form of loan or IOU: the holder of the bond is the lender (creditor), the issuer of the bond is the borrower (debtor), and the coupon is the interest. Bonds provide the borrower with external funds to finance long-term investments, or, in the case of government bonds, to finance current expenditure.
Chamberlainâs monopolistic competition is the blending of competition and monopoly. The most distinguishing feature of monopolistic competition is that the products of various firms are not identical but different although they are close substitutes for each other.
The following are prominent characteristics of a competitive oligopoly: 1. Dominance by a few firms -- While the industry may have several firms that operate with industry, in an oligopoly market, only a few large firms control and dominate the market. A prime example of this is the oil industry. competitive oligopoly is a market that is dominated by only a few large firms. These firms prefer not to compete via price wars and therefore compete in various other ways, such as advertising, product differentiation and barriers.