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Preference stock |
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Preference 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.Preference stock Similar MatchesRevealed preferenceRevealed preferenceThe use of the value of expenditure to "reveal" the preference of a consumer or group of consumers for the bundle of goods they purchase compared to other bundles of equal or smaller value. Used by Samuelson (1939) and Ohyama (1972), especially, to examine the gains from trade. Preference for varietyPreference for varietyThe increased utility that people experience when they have access to a larger number of differentiated product varieties. In reality this may reflect their ability to find products more closely suited to their own particular needs, but as modeled in the Dixit-Stiglitz utility function, they are better off consuming small quantities of each of a larger number of products. 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. Preference sharePreference sharePreferred shares of a corporation that have first claim to preferred dividends. Loan Preference PrincipleLoan 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. Further Suggestionsstepped preference sharesparticipating preference shares Preferences Liquidity preference hypothesis Tax preference item redeemable preference shares Weak axiom of revealed preference Tariff preference Community preferences Generalized System of Preferences cumulative preference shares Homothetic preferences Identical preferences Involuntary liquidation preference |
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