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Definitions for: market segmentation theory
market segmentation theory

theory of interest rates that says short-term and long-term markets act independently of each other and that investors have fixed maturity preferences. Also called segmented markets theory. Supporters of this theory maintain that short-term and long-term rates are distinct markets, each with its own buyers and sellers, and are not easily substituted for each other.

Copyright c 2006, 2000, 1997, 1993, 1990 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.

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