Precedent
A case which establishes legal principles to a certain set of facts,
coming to a certain conclusion, and which is to be followed from that
point on when similar or identical facts are before a court. Precedent
form the basis of the theory of stare decisis which prevent "reinventing
the wheel" and allows citizens to have a reasonable expectation
of the legal solutions which apply in a given situation.
Preferred
shares
A share in a company that has some kind of special right or privilege
attached to it, such as that it is distinguished from the company's
common shares. The most common special right is a preference over holders
of common shares when dividends are declared. Another, is for the preferred
shares to be redeemable at the option of either the holder or the company.
Still another might be to disallow voting rights to preferred shareholders.
Depending on the local laws in your state, there may be no limit to
the qualifications a company can attach to preferred shares. For example,
a family company may only allow holders of preferred shares to use a
recreational property belonging to the company.
Preponderance
A word describing evidence that persuades a judge or jury to lean to
one side as opposed to the other during the course of litigation. In
many states, criminal trials require evidence beyond a reasonable doubt.
But in civil trials, evidence is required only by preponderance of the
evidence. The judge (or jury, where applicable) will perceive the evidence
of one side as outweighing the other based on which side has the most
persuasive or impressive evidence. The strength or "weight"
of evidence is not decided by the sheer number of witnesses because
the judge decides on the credibility of witnesses and give their testimony
weight accordingly. The side with the preponderance of evidence wins
the case.
