what

Anne Patricia Villamil has written:

'Liquidity preference, costly state verification, and optimal financial intermediation'

A model clev l­

oped by John Maynard Keynesthat predicts the equilibrium interest rate on the basis of the supply of and demand for money

The IS-LM (Investments-Savings - Liquidity preference Money supply) model refers to the economical model linking interest rates with real output, created by Hicks.

Ordinary shares are those which issue to normal shareholders which are last in payment priority list and only receives dividend in case of profit and liquidity is good.

Preference share has preference over payment form common share capital and it receives fixed percentage of interest even in case of loss to business.