|
|
Pecking order view (of capital structure) |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Pecking order view (of capital structure)The argument that external financing transactions costs, especially those associated with the problem of adverse selection, create a dynamic environment in which firms have a preference, or pecking-order of preferred sources of financing, when all else is equal. Internally generated funds are the most preferred, followed by new debt, and debt-equity hybrids. Finally, new equity is at the least preferred source.Pecking order view (of capital structure) Similar MatchesMarket microstructureMarket microstructureThe functional setup of a market. InfrastructureInfrastructureThe facilities that must be in place in order for a country or area to function as an economy and as a state, including the capital needed for transportation, communication, and provision of water and power, and the institutions needed for security, health, and education. Structured portfolio strategyStructured portfolio strategyDesigning a portfolio to achieve a level of performance that matches some predetermined liabilities that must be paid out in the future. Market structureMarket structureThe way that suppliers and demanders in an industry interact to determine price and quantity. There are four main idealized market structures that have been used in trade theory: perfect competition, monopoly, oligopoly, and monopolistic competition. Structured arbitrage transactionStructured arbitrage transactionA self-funding, self-hedged series of transactions that usually use mortgage-backed securities (MBS) as the primary assets. Further SuggestionsStructured settlementStructured debt Restructured loan Personal tax view (of capital structure) capital structure Structured note Pie model of capital structure Term structure of interest rates Neighborhood production structure |
|
|
|