Pecking-Order View (of Capital Structure)

Pecking-Order View (of Capital Structure)
Theory that the costs of getting external funding, especially in case of adverse selection, brings about a situation where businesses have a pecking order or order of preference for funding sources when other parameters are comparable. Internal funds get top preference, followed by new debt, debt equity combinations and finally fresh equity.

Random Finance Terms for the Letter P

  • Peak
  • Pecking-Order View (of Capital Structure)
  • Pension Benefit Guaranty Corporation (PBGC)
  • Pension Plan
  • Pension Sponsors
  • Pent Up Demand
  • Perfect Capital Market
  • Perfect competition
  • Perfect Hedge
  • Perfect Market View (of capital structure)