Meaning 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
More terms such as Pecking-order view (of capital structure) in Dictionary P.
- Definition Price-Sales Ratio:
- Examples dividing current stock price by revenue per share (adjusted for stock splits). Revenue per share for the P/S ratio is determined by dividing revenue for past 12 months by number of shares outstanding pecking-order view (of capital structure) definition.
- Definition Placement:
- Examples A bank depositing Eurodollars with (selling Eurodollars to) another bank is often said to be making a placement pecking-order view (of capital structure) explain.
- Definition Policyholder Loan Bonds:
- Examples Packaged loans acquired by policyholders that are secured by the cash surrender value of the policies, and are offered by a broker/dealer as bonds pecking-order view (of capital structure) what is.
- Definition Property Tax:
- Examples A tax levied on real property based on its use and its assessed value pecking-order view (of capital structure) meaning.
- Definition Passive Bond:
- Examples A bond without any interest yield pecking-order view (of capital structure) abbreviation.
