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.

 

Related Words

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 . . . View Full Definition

Peer Review: The analysis of a clinician's care by a group of that clinician's professional colleagues. The provider's care is generally compared to applicable standards of care, and the group's analysis . . . View Full Definition

Peer Review Organizations (Pros): According to the Balanced Budget Act of 1997, organizations or groups of practicing physicians and other healthcare professionals paid by the federal government to review and evaluate the se . . . View Full Definition

Perfect Capital Market: A market in which there are never any arbitrage opportunities.