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Loan Preference Principle |
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Loan Preference PrincipleThe theory that a covered loan is less expensive when its cost is calculated in one currency, it will also be less expensive in all other currencies.Loan Preference Principle Similar MatchesPreference sharePreference sharePreferred shares of a corporation that have first claim to preferred dividends. Involuntary liquidation preferenceInvoluntary liquidation preferenceA premium that must be paid to preferred or preference stockholders if the issuer of the stock is forced into involuntary liquidation. PreferencesPreferences1. In trade policy, this refers to special advantages, such as lower-than-MFN tariffs, accorded to another country's exports, usually in order to promote that country's development. See GSP. 2. In trade theory, this refers to the attitudes of consumers toward different goods, as represented by a utility function. Some propositions in trade theory use the assumption of identical and/or homothetic preferences. Preference sharesPreference sharesShares in a company which give their holders an entitlement to a fixed dividend but which do not usually carry voting rights. The important difference between preference and ordinary shares are:The dividend on ordinary shares is uncertain and variable (high when the company does well, poor or non-existent when it does badly). Preference shareholders get a fixed dividend which, if not paid, usually accrues until it can be.Each ordinary share usually carries a vote. Preference shares do not usually carry a vote unless dividends fall into arrears.In the event of a winding up, preference shares are usually repayable at par value, and rank above the claims of ordinary shareholders (but behind bank and trade creditors).Preference shares may be issued with the right of conversion into ordinary shares. These are called convertibles. Community preferencesCommunity preferencesA set of consumer preferences, analogous to those of an individual as might be represented by a utility function, but representing the preferences of a group of consumers. The existence of well-behaved community preferences requires restrictive assumptions about individual preferences and/or incomes. Further SuggestionsHomothetic preferencesLiquidity preference hypothesis Tax preference item Identical preferences Weak axiom of revealed preference participating preference shares Preference stock Preference for variety Revealed preference cumulative preference shares redeemable preference shares Tariff preference stepped preference shares Generalized System of Preferences |
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