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Financial Terms beginning with P

P Test
P Value
P
PAB
PEG Ratio (Under Review)
PL Statement (Under Review)
PPP (Under Review)
Pac Man Defense
Pac Man
Pacific Exchange (PCX)
Pacific Rim
Package Deal
Package Deal is a Canadian television sitcom created by Andrew Orenstein about three brothers and the woman who comes between them. It debuted on City on June 18, 2013 and ran for two seasons.
Paid In Capital
Paid in capital refers to capital contributed to a corporation by investors through purchase of stock from the corporation. It includes share capital as well as additional paid-in capital.
Paid Up Capital
Paid Up
Painting The Tape
Paired Shares
Pairing Off
Pairing Off is an album by saxophonist Phil Woods' Septet recorded in 1956 and released on the Prestige label.
Pairoff
Pairs Trade
The pairs trade or pair trading is a market neutral trading strategy enabling traders to profit from virtually any market conditions: uptrend, downtrend, or sideways movement. This strategy is categorized as a statistical arbitrage and convergence trading strategy. The pair trading was pioneered by Gerry Bamberger and later led by Nunzio Tartaglia's quantitative group at Morgan Stanley in the 1980s.
Pale Recession
Palisades Water Index
The Palisades Water Index is a modified equal-dollar weighted stock market index. It is designed to track the performance of companies engaged in the global water industry such as pump and filter manufacturers, water utilities, and irrigation equipment manufacturers. The index was set at 1000 as of December 31, 2003.
Palladium
Panel Bank
Panic Buying
Panic buying is the act of buying unusually large amounts of a product in anticipation of or after a disaster or perceived disaster, or in anticipation of a large price increase or shortage, as can occur before a blizzard or hurricane or government decree banning a particular popular product, such as incandescent light bulbs. These goods are bought in large amounts to offset a potential shortage or as an act of safety. While panic buying can result in a sudden increase in the cost of goods, it is distinct from looting as it does not entail theft or deliberate property damage.
Panic Selling
Panic selling is a wide-scale selling of an investment which causes a sharp decline in prices. Specifically, an investor wants to get out of an investment with little regard of the price obtained. The selling activity is problematic because the investor is selling in reaction to emotion and fear, rather than evaluating the fundamentals. Most major stock exchanges use trading curbs to throttle panic selling, providing a cooling period for people to digest information related to the selling and restore some degree of normalcy to the market.
Paper Dealer
Paper Millionaire
Paper Money
Paper Money is the second album by the California-based hard rock band Montrose. It was produced by Ted Templeman and is the band's final recording with original vocalist Sammy Hagar. It marks the arrival of new bass player Alan Fitzgerald, replacing original bassist Bill Church.
Paper Profit (Paper Loss)
Paper Trade
Par Value
Par value, in finance and accounting, means stated value or face value. From this come the expressions at par, over par and under par.
Par Yield Curve
Par
Parabolic Indicator
Paradigm Shift
Paradox Of Thrift
The paradox of thrift is a paradox of economics. The paradox states that an increase in autonomous saving leads to a decrease in aggregate demand and thus a decrease in gross output which will in turn lower total saving. The paradox is, narrowly speaking, that total saving may fall because of individuals' attempts to increase their saving, and, broadly speaking, that increase in saving may be harmful to an economy. Both the narrow and broad claims are paradoxical within the assumption underlying the fallacy of composition, namely that what is true of the parts must be true of the whole. The narrow claim transparently contradicts this assumption, and the broad one does so by implication, because while individual thrift is generally averred to be good for the economy, the paradox of thrift holds that collective thrift may be bad for the economy.
Parallel Loan
A parallel loan is two loans taken out by two pairs of companies in different countries from local lenders with the aim of swapping the resulting loans in different currencies. It was an early form of currency swap.
Paraplanning
Parasitic Advertising
Parent Company
A parent company is a company that owns enough voting stock in another firm to control management and operation by doing and influencing or electing its board of directors. The second company is deemed a subsidiary of the parent company.
Pareto Analysis
Pareto analysis is a formal technique useful where many possible courses of action are competing for attention. In essence, the problem-solver estimates the benefit delivered by each action, then selects a number of the most effective actions that deliver a total benefit reasonably close to the maximal possible one.
Pareto Efficiency
Pareto efficiency or Pareto optimality is a state of allocation of resources from which it is impossible to reallocate so as to make any one individual or preference criterion better off without making at least one individual or preference criterion worse off. The concept is named after Vilfredo Pareto, Italian engineer and economist, who used the concept in his studies of economic efficiency and income distribution. The concept has been applied in academic fields such as economics, engineering, and the life sciences.
Pareto Improvement
Pareto efficiency or Pareto optimality is a state of allocation of resources from which it is impossible to reallocate so as to make any one individual or preference criterion better off without making at least one individual or preference criterion worse off. The concept is named after Vilfredo Pareto, Italian engineer and economist, who used the concept in his studies of economic efficiency and income distribution. The concept has been applied in academic fields such as economics, engineering, and the life sciences.
Pareto Principle
The Pareto principle states that, for many events, roughly 80% of the effects come from 20% of the causes. Management consultant Joseph M. Juran suggested the principle and named it after Italian economist Vilfredo Pareto, who noted the 80/20 connection while at the University of Lausanne in 1896, as published in his first paper, "Cours d'économie politique". Essentially, Pareto showed that approximately 80% of the land in Italy was owned by 20% of the population; Pareto developed the principle by observing that about 20% of the peapods in his garden contained 80% of the peas.
Pari Mutuel Revenues
Pari passu
Paris Club
The Paris Club is a group of officials from major creditor countries whose role is to find coordinated and sustainable solutions to the payment difficulties experienced by debtor countries. As debtor countries undertake reforms to stabilize and restore their macroeconomic and financial situation, Paris Club creditors provide an appropriate debt treatment. Paris Club creditors provide debt treatments to debtor countries in the form of rescheduling, which is debt relief by postponement or, in the case of concessional rescheduling, reduction in debt service obligations during a defined period or as of a set date.
Paris Hilton Stock Index
Paris Pair
Paris Stock Exchange (PAR) .PA
Parity Bond
Parity Price
Parity Product
A parity product is a product category or group of categories where the several brands within that category possess functionally equivalent attributes, making one brand a satisfactory substitute for most other brands in that category. It is a product or service that satisfies the need of a consumer that another product or service fulfills.
Parity
Parking Violation
A parking violation is the act of parking a motor vehicle in a restricted place or for parking in an unauthorized manner. It is against the law virtually everywhere to park a vehicle in the middle of a highway or road; parking on one or both sides of a road, however, is commonly permitted. However, restrictions apply to such parking, and may result in an offense being committed. Such offenses are usually cited by a police officer or other government official in the form of a traffic ticket.
Parking
Parsonage Allowance
Partial Redemption
Partial Release
Partially Convertible Debenture (PCD)
Participating Convertible Preferred Share (PCP)
Participating Policy
A with-profits policy or participating policy is an insurance contract that participates in the profits of a life insurance company. The company is often a mutual life insurance company, or had been one when it began its with-profits product line. Similar arrangements are found in other countries such as those in continental Europe.
Participating Preferred Stock
Participating preferred stock is preferred stock which provides a specific dividend that is paid before any dividends are paid to common stock holders, and which takes precedence over common stock in the event of a liquidation. This form of financing is used by private equity investors and venture capital firms. Holders of participating preferred stock get both their money back and the money that is distributable with respect to the percentage of common shares into which their preferred stock can convert.
Participation Mortgage
A participation mortgage or participating mortgage is a mortgage loan, or sometimes a group of them, in which two or more persons have fractional equitable interests. In this arrangement the lender, or mortgagee, is entitled to share in the rental or resale proceeds from a property owned by the borrower, or mortgagor. The mortgage is evidenced by the bank or other fiduciary that has legal title to the mortgage and sells the fractional shares to investors or makes the investment for the certificate holders. A participation mortgage may or may not require principal and interest payments and may or may not contain a balloon payment.
Participation Rate
The workforce or labour force is the labour pool in employment. It is generally used to describe those working for a single company or industry, but can also apply to a geographic region like a city, state, or country. Within a company, its value can be labelled as its "Workforce in Place". The workforce of a country includes both the employed and the unemployed. The labour force participation rate, LFPR, is the ratio between the labour force and the overall size of their cohort. The term generally excludes the employers or management, and can imply those involved in manual labour. It may also mean all those who are available for work.
Participatory Notes
Participatory Notes commonly known as P-Notes or PNs are instruments issued by registered foreign institutional investors to overseas investors, who wish to invest in the Indian stock markets without registering themselves with the market regulator, the Securities and Exchange Board of India - SEBI.
Partnership
A partnership is an arrangement where parties, known as partners, agree to cooperate to advance their mutual interests. The partners in a partnership may be individuals, businesses, interest-based organizations, schools, governments or combinations. Organizations may partner to increase the likelihood of each achieving their mission and to amplify their reach. A partnership may result in issuing and holding equity or may be only governed by a contract. Partnership agreements can be formed in the following areas...
Party Wall
A party wall is a dividing partition between two adjoining buildings that is shared by the tenants of each residence or business. When built for this purpose, the builder will lay the wall along a property line dividing two terraced flats or row houses, so that one half of the wall's thickness lies on each property. This type of wall is usually structural. Party walls can also be formed by two abutting walls built at different times. The term can be also used to describe a division between separate units within a multi-unit apartment complex. Very often the wall in this case is non-structural but designed to meet established criteria for sound and/or fire protection between residential units. Party walls are typically made of non-combustible material. Where required by code, the party wall could be a firewall. The wall starts at the foundation and continues up to a parapet, creating two separate and structurally independent buildings on either side.
Pass Through Certificate
Pass Through Rate
Pass Through Security
Passbook Loan
Passive Activity Loss Rules
Passive Activity
Passive ETF
Passive Foreign Investment Company (PFIC)
Passive Income
Passive income is income resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it.
Passive Investing
Passive management is an investing strategy that tracks a market-weighted index or portfolio. The idea is to minimize investing fees and to avoid the adverse consequences of failing to correctly anticipate the future. The most popular method is to mimic the performance of an externally specified index. investors typically do this by buying one or more index funds. By tracking an index, an investment portfolio typically gets good diversification, low turnover, and low management fees. With low fees, an investor in such a fund would have higher returns than a similar fund with similar investments but higher management fees and/or turnover/transaction costs.
Passive Loss
Passive income is income resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it.
Passive Management
Passive management is an investing strategy that tracks a market-weighted index or portfolio. The most popular method is to mimic the performance of an externally specified index by buying an index fund. By tracking an index, an investment portfolio typically gets good diversification, low turnover, and low management fees. With low fees, an investor in such a fund would have higher returns than a similar fund with similar investments but higher management fees and/or turnover/transaction costs.
Past Due Balance Method
Past Due
Past Service
Patent Cliff
The term patent cliff refers to the phenomenon of patent expiration dates and an abrupt drop in sales that follows for a group of products capturing high percentage of a market. Usually, these phenomena are noticed when they affect blockbuster products—a blockbuster product in the pharmaceutical industry, for example, is defined as a product with sales exceeding 1 billion USD per year.
Patent
Payday Loan
A payday loan is a small, short-term unsecured loan, "regardless of whether repayment of loans is linked to a borrower's payday." The loans are also sometimes referred to as "cash advances," though that term can also refer to cash provided against a prearranged line of credit such as a credit card. Payday advance loans rely on the consumer having previous payroll and employment records. Legislation regarding payday loans varies widely between different countries and, within the USA, between different states.
Penny Stock
Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share. In the United States, the SEC defines a penny stock as a security that trades below $5 per share, is not listed on a national exchange, and fails to meet other specific criteria. In the United Kingdom, stocks priced under £1 are called penny shares. In the case of many penny stocks, low market price inevitably leads to low market capitalization. Such stocks can be highly volatile and subject to manipulation by stock promoters and pump and dump schemes. Such stocks present a high risk for investors, who are often lured by the hope of large and quick profits. Penny stocks in the USA are often traded over-the-counter on the OTC Bulletin Board, or Pink Sheets. In the United States, the Securities and Exchange Commission and the Financial Industry Regulatory Authority have specific rules to define and regulate the sale of penny stocks.
Pension Fund
A pension fund, also known as a superannuation fund in some countries, is any plan, fund, or scheme which provides retirement income.
Planned Obsolescence
Planned Obsolescence is a book by Kathleen Fitzpatrick, Director of Scholarly Communication at the Modern Language Association and Visiting Research Professor of English at New York University, published by NYU Press on November 1, 2011.
Ponzi Scheme
A Ponzi scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned by the operator. Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent.
Portfolio
Preferred Stock
Preferred stock is a type of stock which may have any combination of features not possessed by common stock including properties of both an equity and a debt instrument, and is generally considered a hybrid instrument. Preferred stocks are senior to common stock, but subordinate to bonds in terms of claim and may have priority over common stock in the payment of dividends and upon liquidation. Terms of the preferred stock are described in the articles of association.
Premium
Price Earnings Ratio
The price/earnings ratio is the ratio of a company's stock price to the company's earnings per share. The ratio is used in valuing companies.
Price Earnings to Growth
Price to Book Ratio
The price-to-book ratio, or P/B ratio, is a financial ratio used to compare a company's current market price to its book value. It is also sometimes known as a Market-to-Book ratio. The calculation can be performed in two ways, but the result should be the same each way. In the first way, the company's market capitalization can be divided by the company's total book value from its balance sheet. The second way, using per-share values, is to divide the company's current share price by the book value per share.
Private Equity
In finance, private equity is an asset class consisting of equity securities and debt in operating companies that are not publicly traded on a stock exchange.
Private Mortgage Insurance
Lenders mortgage insurance, also known as private mortgage insurance in the US, is insurance payable to a lender or trustee for a pool of securities that may be required when taking out a mortgage loan. It is insurance to offset losses in the case where a mortgagor is not able to repay the loan and the lender is not able to recover its costs after foreclosure and sale of the mortgaged property. Typical rates are $55/mo. per $100,000 financed, or as high as $125/mo. for a typical $200,000 loan.
Profit Margin
Profit Margin, net margin, net profit margin or net profit ratio is a measure of profitability. It is calculated by finding the net profit as a percentage of the revenue.
Profit and Loss Statement
An income statement or profit and loss account is one of the financial statements of a company and shows the company's revenues and expenses during a particular period. It indicates how the revenues are transformed into the net income. It displays the revenues recognized for a specific period, and the cost and expenses charged against these revenues, including write-offs and taxes. The purpose of the income statement is to show managers and investors whether the company made or lost money during the period being reported.
Put Option
In finance, a put or put option is a stock market device which gives the owner of the put the right, but not the obligation, to sell an asset, at a specified price, by a predetermined date to a given party. The purchase of a put option is interpreted as a negative sentiment about the future value of the underlying. Put options are most commonly used in the stock market to protect against the decline of the price of a stock below a specified price. If the price of the stock declines below the specified price of the put option, the owner/buyer of the put has the right, but not the obligation, to sell the asset at the specified price, while the seller of the put has the obligation to purchase the asset at the strike price if the owner uses the right to do so. In this way the buyer of the put will receive at least the strike price specified, even if the asset is currently worthless.