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Liquidity preference hypothesis |
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Liquidity preference hypothesisThe argument that greater liquidity is valuable, all else equal. Also, the theory that the forward rate exceeds expected future interest rates.Liquidity preference hypothesis Similar MatchesTariff preferenceTariff preferenceA lower (or zero) tariff on a product from one country than is applied to imports from most countries. This violation of the MFN principle is permitted in special cases, including some preferential trade arrangements and the GSP. Preference stockPreference stockA security that ranks junior to preferred stock but senior to common stock in the right to receive payments from the firm; essentially junior preferred stock. Cumulative preference sharesCumulative preference sharesWhen a company fails to pay a dividend, holders of cumulative preference shares are entitled to receive this missed payment when a dividend is next declared. This rule is cumulative and they are also entitled to the current dividend provided sufficient cash is available. These payments receive priority over the claims of ordinary shareholders. Homothetic preferencesHomothetic preferencesTogether with identical preferences, this assumption is used for many propositions in trade theory, in order to assure that consumers with different incomes but facing the same prices will demand goods in the same proportions. Stepped preference sharesStepped preference sharesPreference shares with dividends which increase annually by a specified amount and with a predetermined capital return. Further SuggestionsLoan Preference PrincipleWeak axiom of revealed preference preference shares Tax preference item Generalized System of Preferences participating preference shares Preference for variety Revealed preference Preferences Involuntary liquidation preference Identical preferences Community preferences redeemable preference shares Preference share |
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