|Preferred habitat theory|
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Definition of Preferred habitat theory
Preferred habitat theory
A biased expectations theory that believes the term structure reflects the
A biased expectations theory that asserts that the
Theories of the term structure of interest rates which include the pure
Publicly traded issues that may be collateralized by mortgages and MBSs.
The analysis of principal-agent relationships, wherein one person, an agent, acts on behalf of
An alternative model to the capital asset pricing model developed by
Floating rate preferred stock, the dividend on which is adjusted every
Security prices sometimes move wildly above their true values.
Convertible preferred stock that may be exchanged, at the
preferred stock that can be converted into common stock at the option of the holder.
The rate of return required by the investors in the preferred stock of
preferred stock whose dividends accrue, should the issuer not make timely
theory that expected spot exchange rate equals the forward rate.
preferred stock paying dividends that vary with short-term interest rates.
A biased expectations theory that asserts that the implied forward
A form of the pure expectations theory which suggests that the returns on bonds
Modern portfolio theory
Principles underlying the analysis and evaluation of rational portfolio choices
Monthly income preferred security (MIP)
preferred stock issued by a subsidiary located in a tax haven.
Non-cumulative preferred stock
preferred stock whose holders must forgo dividend payments when the
Normal backwardation theory
Holds that the futures price will be bid down to a level below the expected
pecking order theory
Firms prefer to issue debt rather than equity if internal finance is insufficient.
Used in older contracts to confer the same rights as an irrevocable beneficiary. Applied to family members.
Preferred equity redemption stock (PERC)
preferred stock that converts automatically into equity at a
As non-smoking rates caused a major reduction in the cost of life insurance in the early 1980's, the emergence of preferred non-smoker rates in 1998 has caused another noteworthy reduction in rates. A growing number of insurance companies are offering better rates which go beyond simply looking at gender or smoking habits. Other health related factors such as physical build, lifestyle, avocation and personal and family health history indicating longer life expectancy can add up to significant cost savings to new life insurance applicants. Make certain to ask about these new preferred rates.
preferred shares give investors a fixed dividend from the company's earnings. And more
Are equity instruments that take no security against assets, have flexible terms of repayment and pay fixed or floating dividends.
A security that shows ownership in a corporation and gives the holder a claim, prior to the
A type of equity security where holders have a claim on the assets
A type of stock that usually pays a fixed dividend prior to any distributions
Stock that takes priority over common stock in regard to dividends.
Preferred stock agreement
A contract for preferred stock.
Preferred Stock Stock that has a claim on assets and dividends of a corporation that are prior
to that of common stock. preferred stock typically does not carry the right to vote.
Pure expectations theory
A theory that asserts that the forward rates exclusively represent the expected
Quantity Theory of Money
theory that velocity is constant, and so a change in money supply will change nominal income by the same percentage. Formalized by the equation Mv = PQ.
random walk theory
Security prices change randomly, with no predictable trends or patterns.
Real Business Cycle Theory
Belief that business cycles arise from real shocks to the economy, such as technology advances and natural resource discoveries, and have little to do with monetary policy.
Redeemable Preferred Stock
A preferred stock issue that must be redeemed by the issuing enterprise or is redeemable at the option of the investor. Considered a debt security for accountingpurposes.
Static theory of capital structure
theory that the firm's capital structure is determined by a trade-off of the
theory of constraints (TOC)
a method of analyzing the bottlenecks
Debt levels are chosen to balance interest tax shields against the costs of financial distress.
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