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Definition of Preferred habitat theory - Finance dictionary

Preferred habitat theory (See Chapter 24 of the Vernimmen)

Preferred habitat theory, proposed in the mid-1960s by Franco Modigliani and Richard Sutch, states that investors prefer certain investment timeframes. Companies that wish to issue securities whose timeframe is considered undesirable, will thus have to pay a premium to attract investors. See also liquidity preference theory.

Preferred habitat theory (See Chapter 24 of the Vernimmen)

Preferred habitat theory, proposed in the mid-1960s by Franco Modigliani and Richard Sutch, states that investors prefer certain investment timeframes. Companies that wish to issue securities whose timeframe is considered undesirable, will thus have to pay a premium to attract investors. See also liquidity preference theory.

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Definitions of terms begining with the same letter as "Preferred habitat theory" :

P/E ratio, PER, Price-to-earnings ratio
PBR
PDS
PE, see P/E ratio
PER
POW
PV
PVI
Paper
Paper bill of exchange
Paper promissory note
Par value
Parent company regime
Pari passu covenant
Partial commitment
Participant
Participating preference shares
Path of wealth, POW
Pay-in-kind securities (PIK securities)
Payables
Payback period
Payback ratio
Payment method
Payout ratio
Pecking order theory
Peer comparison method
Percentage control
Percentage interest
Percentage of completion method
Perfect market
Perfect markets theory of capital structure
Permanent financing
Perpetual subordinated loans and notes
Perpetuals
Perpetuity
 Pitch
Plain vanilla
Poison pill
Political risk
Pooling of interest method
Pooling on demand
Portable alpha
Portfolio insurance
Position
Positive covenant
Pragmatic valuation approach
Pre-emption (right of)
Pre-emptive action
Pre-emptive right
Pre-emptive subscription rights
Preference share
Preferential dividend
Preferred habitat theory
Preferred securities
Preferred share
Premium
Prepaid expenses
Prepaid income
Present Value Index, PVI
Present value
Price adjustment
Price-To-Book ratio, PBR
Price-to-earnings ratio
Principal
Principle of prudence
Priority dividend shares (non-voting) (PDS)
Private negotiation
Private placement
Privileged share
Pro forma, pro forma statements
 Process-oriented production
Product life cycle
Production
Production models
Profit
Profit and loss account/statement, P&L
Profit before tax and non recurrent items
Profit before tax and non recurring items
Profit generating capacity
Profit on ordinary activities
Profitability
Program trading
Project financing
Projected benefit obligation, PBO
Promissory note
Proportional rate
Proportionate consolidation
Prospectus
Provision
Provision for employee benefits and pensions
Pręcipium
Public offer
Public offering
Public-to-Private, P to P
Purchase method
Purchase warrant
Purchases
Put on the seller
Put option
Put provision
Put warrant
Put-call parity
Putable instrument

Preferred habitat theory (See Chapter 24 of the Vernimmen)

Preferred habitat theory, proposed in the mid-1960s by Franco Modigliani and Richard Sutch, states that investors prefer certain investment timeframes. Companies that wish to issue securities whose timeframe is considered undesirable, will thus have to pay a premium to attract investors. See also liquidity preference theory.

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