HomeDefinitionsCompareDebt Loan Preference PrincipleThe financial definition for Loan Preference Principle:The 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. Similar MatchesInvoluntary liquidation preferenceInvoluntary liquidation preferenceA premium that must be paid to preferred or preference stockholders if the issuer of the stock is forced into involuntary liquidation. Liquidity preference hypothesisLiquidity preference hypothesisThe argument that greater liquidity is valuable, all else equal. Also, the theory that the forward rate exceeds expected future interest rates. Preference sharePreference sharePreferred shares of a corporation that have first claim to preferred dividends. Further SuggestionsPreference stockTax preference item Click to compare definitions of Loan Preference Principle Click to view definitions beginning lo |