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Financial dictionary terms starting with “p”
The p-value is used in hypothesis testing to determine whether to accept or reject the null hypothesis. It is the smallest level of significance where the null hypothesis can be rejected. The p-value reflects the strength of the evidence against t See More.
The Pacific Exchange (PCX) was a stock exchange based in San Francisco and Los Angeles. See More.
A package deal combines several products, discounts, features or services as one transaction. See More.
Paid-up capital, also called paid-in capital, is a measure of how much money investors have pumped into the company since inception in return for equity. The line item appears on the balance sheet. See More.
In the finance world, painting the tape means to trade securities in a manipulative way in order to influence the reported trading data for those securities. See More.
Pairing off occurs when a brokerage firm buys and sells short and long positions that offset one another and then settles those trades in cash. See More.
A pairoff occurs when a brokerage firm buys and sells short and long positions that offset one another and then settles those trades in cash. See More.
A pale recession is a term describing a recession that does not have much impact on an economy. See More.
Panic buying refers to the purchase of a stock immediately after a sudden, substantial price increase. See More.
A paper dealer is a financial institution that buys and sells commercial paper. See More.
Paper loss refers to the amount that would be lost on a security if it were sold. See More.
A paper millionaire is a person who has at least $1 million of unrealized gains. See More.
Paper money is a medium of exchange for goods or services within an economy. It is printed on paper, rather than in coin form. See More.
Paper profit refers to the amount you would gain on a security if it were sold. See More.
Par value is the face value of a bond. It is the principal amount that the lender (investor) is lending to the borrower (issuer). See More.
The paradox of thrift is an economic theory that states that the more people save, the less they spend and thus the less they stimulate the economy. See More.
Parallel loans are loans in which two parties, each in a different country, lend money to each other in an effort to hedge against currency risk. They are also called back-to-back loans. See More.
A parallel shift in the yield curve occurs when the interest rates among bonds (or T-Bills) with different maturity dates change at the same rate. See More.
A parent company has control of the management and operations of a subsidiary company. It is also referred to as "holding company." See More.
Pari-passu is a latin term that means "at an equal rate or pace." The term is often used in venture capital. See More.
The Paris Club is slang for 19 developed countries who meet in Paris to discuss issues with nations to which they have lent money. See More.
The Paris Hilton Stock Index is a list of companies that benefit from the actions of and associations with Paris Hilton. See More.
In the tax world, a parsonage allowance is income earned by members of the clergy but excluded from gross income. See More.
A partial redemption occurs when an investor withdraws some of a security's value. See More.
Participating preferred stock gives stock holders priority over common stock holders for payment of dividends and proceeds from liquidation of a company. See More.
Participation rate usually refers to the portion of the economy's working age population that is in the civilian labor market. See More.
A partnership is a business structure in which the owners (partners) share with each other the profits and losses. See More.
A pass-through entity is a special business structure that is used to reduce the effects of double taxation. Pass-through entities don't pay income taxes at the corporate level. Instead, corporate income is allocated among the owners, and in See More.
Pass-through income is sent from a pass-through entity to its owners. The income is not taxed at the corporate level -- it is only taxed at the individual owners' level.A pass-through entity is a special business structure that is used to reduce See More.
Pass-through securities receive payments from an intermediary that collects payments from a pool of assets. See More.
Passive income is income generated from any business activity in which the earner does not participate. When people describe the dream of "getting rich quick" and "striking it big," they are usually describing a scheme that involves a comp See More.
Passive investing is a strategy focused on achieving long-term appreciation of portfolio values with limited day-to-day management of the portfolio itself. See More.
A passive loss is a financial loss from rental property, limited partnership or other activities in which the investor is not materially involved. See More.
Passive management is an investment strategy whereby an investor or financial advisor makes long-term investments in certain securities and is not influenced by short-term market fluctuations. The management style is the opposite of active management See More.
Also called a dry trust or a naked trust, a passive trust is a trust into which a person transfers assets in order to pass them on to heirs or beneficiaries. See More.
Past due means overdue. Typically, a bill is past due if the borrower is 30 days past the payment deadline. See More.
The past-due balance method is a system for calculating interest charges based on loan or credit balances not paid prior to a specified due date. See More.
Pasternak's normalized net asset value (NNAV) allows investors to compare master limited partnership (MLP) funds with each other and with non-MLP closed-end funds. See More.
A patent is a grant of property rights to an invention. In the United States, this is done through the U.S. Patent and Trademark Office. See More.
A patent troll is a person or company whose main business purpose is to sue other people or companies for patent infringement. See More.
Also known as “Obamacare” and even the more generic “health care reform,” the Patient Protection and Affordable Care Act (PPACA) is a bill signed into law on March 23, 2010, by President Barack Obama. PPACA works in conjunction with the Healt See More.
Pay yourself first is a phrase referring to the idea that investors should routinely and automatically put money into savings before spending on anything else. See More.
A paycation is when an employee takes paid vacation from his or her employer and works at another job. See More.
Paycheck-to-paycheck means a lifestyle in which a person does not save money and would incur significant financial stress if he or she does not receive his or her next paycheck. See More.
A payday loan is an advance on one’s paycheck. Independent lenders and some large banks offer the service. See More.
The term "payee" refers to an individual or entity that will receive a payment. It can also be referred to as the beneficiary in situations that pertain to a benefactor. See More.
Payment in kind refers to the use of a good or service as payment instead of cash. See More.
A payment in kind (PIK) bond is a bond that pays interest in additional bonds instead of cash. See More.
A payout event refers to the accelerated repayment of bond principal, usually on an asset-backed security (ABS). See More.
The payout ratio, or dividend payout ratio, is the percentage of a company's earnings paid out to investors as cash dividends. See More.
Payroll is the total of the compensation a company pays to its employees. In the accounting world, it is also a term used for calculating and processing paychecks (as in, "doing payroll"). See More.
A pegged exchange rate, also known as a fixed exchange rate, is a type of exchange rate in which a currency's value is fixed against either the value of another country's currency or another measure of value, such as gold. See More.
Penny stocks are small-cap equity shares that trade in the over-the-counter market for prices between several cents and ten dollars. See More.
A pension plan is an arrangement to provide employees with an income when they are no longer earning a regular income from employment. See More.
A pension shortfall occurs when a company offering a pension plan for its employees does not have enough money set aside to meet the company's pension obligations. See More.
Per capita measures help analysts and investors get a better feel for whether a company, country, or other entity is productive, efficient, or profitable. For instance, the per capita measure of GDP indicates whether the country’s workforce is See More.
Per share basis is a carefully scrutinized metric that is often used as a barometer to gauge a company's profitability per unit of shareholder ownership. In many cases, cash flow per share is one of the most important measures. After all, net inc See More.
In finance, a perfect hedge is an investing strategy intended to protect an investment or portfolio against all losses. It usually involves securities that move in the opposite direction than the asset being protected. See More.
Performance bonuses are intended to be motivational tools that encourage employees to keep goals in mind and take action in their everyday work to help the company achieve those goals. It is important to note, however, that performance bonuses a See More.
Permanent open market operations (POMO) are used by the Federal Reserve to either add to or drain the capital reserves available in the banking system. See More.
A perpetual bond is a debt with no maturity date. Investors may collect interest from these bonds indefinitely much as they would expect from a dividend-paying stock or preferred stock. Such a bond is also referred to as a "consol" or "perp." See More.
Person-to-person payments (P2P) is an online technology that allows customers to transfer funds from their bank account or credit card to another individual's account via the Internet or a mobile phone. See More.
Personal Consumption Expenditures (PCE), or the PCE price index, is a statistic compiled and released quarterly by the U.S. Bureau of Economic Analysis (BEA) that synthesizes a host of data, chief among them the U.S. Producer and Consumer Price indic See More.
A personal financial advisor (also spelled personal financial adviser) is an educated investment professional who helps people set and meet long-term financial goals. See More.
Personal income, aka "before-tax income," is the total annual gross earnings of an individual from all income sources, such as: salaries and wages, investment interest and dividends, employer contributions to pension plans, and rental properties. See More.
The Personal Income and Outlay report is compiled by the U.S. Department of Commerce. The report reflects personal income earned by individuals above the age of 18 working in the United States labor force. See More.
Personal property is a class of property that can be moved from one location to another. See More.
Petrocurrency is cash -- usually U.S. dollars -- resulting from the sale of oil and deposited by oil exporters into Western (usually American) banks. See More.
Petrodollars are cash -- usually U.S. currency -- derived from the sale of oil and deposited by oil exporters into Western (usually American) banks. See More.
Petty cash is money kept on-hand, generally, by businesses for making change for clients and to cover minor costs. See More.
The Philadelphia Gold and Silver Index (Nasdaq: XAU) is traded on the Philadelphia Stock Exchange and is made up of 16 precious metal mining companies. See More.
The Philadelphia Semiconductor Index, or SOX, is an index created by and traded on the Philadelphia Stock Exchange. It was introduced on December 1, 1993 with a split-adjusted value of 100. The SOX is the most widely recognized index that invest See More.
The Phillips curve refers to the theory that unemployment rates relate inversely to inflation rates. See More.
Although physical assets commonly come to mind when one thinks of assets, not all assets are tangible. Trademarks, patents, and goodwill are examples of intangible assets. Regardless of their physical form, however, information about a company& See More.
The Eurozone nations of Portugal, Ireland, Italy, Greece and Spain make up a group of financially weak countries often referred to in the financial media by the acronym PIIGS. See More.
A PIN-debit transaction, also known as an online transaction, is a password-protected payment method that authorizes a transfer of funds over an electronic funds transfer (EFT) See More.
Pink Sheets is a publication compiled daily by the National Quotation Bureau that shows over-the-counter (OTC) stocks' bid and ask prices and the dealers that exchange them. See More.
A pit broker, also known as a floor broker, is an employee of a brokerage firm whose job is executing orders on the floor of a stock or commodity exchange on behalf of clients. See More.
A pledged asset is collateral pledged by a borrower to a lender (usually in return for a loan). The lender has the right to seize the collateral if the borrower defaults on the obligation. In some cases, the lender may require the borrower to place p See More.
The opposite of the dividend payout ratio, a company's plowback ratio is calculated as follows: Plowback ratio = 1 – (Annual Dividend Per Share / Earnings Per Share) See More.
Private mortgage insurance (PMI), also called mortgage insurance, is what borrowers must pay on each mortgage payment if they didn't make a 20 percent down payment toward their home loan. The insurance protects the lender financially in case the borr See More.
A point-and-figure chart is a graph which records discrete price changes without accounting for an associated period of time. They are often used in technical analysis as a means of predicting future price changes. See More.
A poison pill is a strategy that tries to create a shield against a takeover bid by another company by triggering a new, prohibitive cost that must be paid after the takeover. See More.
Political risk is the risk of financial, market or personnel losses because of political decisions or disruptions. Also known as "geopolitical risk." See More.
A Ponzi scheme is an investment scam that pays existing investors out of money invested by new investors, giving the appearance of earnings and profits where there are none. Ponzi schemes are also known as pyramid schemes. See More.
Pork barrel spending is a type of appropriated expenditure that is added into a non-related Congressional bill. See More.
Pork Bellies are a major commodity traded on the Chicago Mercantile Exchange. See More.
Porter's 5 Forces is an analytical framework for assessing business competitiveness strategies in a particular market. See More.
Portfolio hedging describes a variety of techniques used by investment managers, individual investors and corporations to reduce risk exposure in an investment portfolio. Hedging uses one investment to minimize the negative impact of adverse price sw See More.
Portfolio management refers to the professional management of securities and other assets. Also referred to as "asset management" and "wealth management." See More.
A portfolio manager is responsible for investing a fund's assets, overseeing investment strategy and carrying-out day-to-day trading. See More.
Position limit refers to the ceiling placed on the number of contracts on a single security which may be held by an individual or cooperative group. See More.
Positive correlation describes a relationship in which changes in one variable are associated with the same kind of changes in another variable. See More.
Pre-market trading is the trading that occurs on electronic market exchanges before regular stock market trading hours begin. See More.
A pre-tax contribution is a payment made with money that has not been taxed. See More.
Pre-tax operating income is a company's operating income before taxes. The formula for pre-tax operating income is: Pre-Tax Operating Income = Gross Revenue - Operating Expenses – Depreciation See More.
A predictive indicator is a ratio, index, report or other measurement that signals a company or market's direction in advance. See More.
Preemptive rights are a clause in an option, security or merger agreement that gives the investor the right to maintain his or her percentage ownership of a company by buying a proportionate number of shares of any future issue of the security. See More.
Preferred shares represent an ownership stake in a company -- in other words, a claim on its assets and earnings. However, as the term suggests, "preferred" shares carry certain advantages. While preferred shares usually do not carry the same See More.
Like shares of common stock, shares of preferred stock represent an ownership stake in a company -- in other words, a claim on its assets and earnings. However, as the term suggests, "preferred" stock carries certain advantages. While preferr See More.
A premium put convertible bond is a bond that can be redeemed by the investor at premium before its maturity date. See More.
Premium to net asset value (NAV) refers to a situation where shares of a closed-end stock fund are trading at a price higher than the fund's net asset value per share. For example, a fund could be described as "trading 5% premium to NAV." See More.
Prepackaged bankruptcy refers to a plan for reorganization under Chapter 11 that a company drafts in cooperation with its lenders. See More.
When a borrower prepays a loan, the borrower saves a lot of interest. But that means the lender also misses out on all that interest. Accordingly, prepayment can sometimes come with a penalty, and this is disclosed in the loan documents. People See More.
When a borrower prepays a loan, the borrower saves a lot of interest. But that means the lender also misses out on all that interest. Accordingly, prepayment can sometimes come with a penalty, and this is disclosed in the loan documents. Howeve See More.
Preservation of capital is an investment strategy that focuses on preventing any losses of an investment's face value. See More.
Previous close shows what the price of a stock or market index was when the market closed on the previous trading day. See More.
Price action is a term often used in technical analysis to interpret and describe price movements of securities. See More.
A price band is a price floor and a cap between which a seller will let buyers place bids on a security, usually during an initial public offering (IPO) See More.
Price basing is a way to use the prices of futures contracts to determine the retail prices of commodities. See More.
A price by volume (PBV) chart is a horizontal histogram that shows a cumulative total of how many shares of a stock traded at a given price. See More.
A price cap regulation places a ceiling on the amount companies in a given industry (typically utilities and telecommunications providers) can charge for services. See More.
A price ceiling is the maximum price a seller can legally charge a buyer for a good or service. Regulators usually set price ceilings. See More.
In the stock market, a price change is the difference in trading prices from one period to the next or the difference between the daily opening and closing prices of a share of stock. See More.
In technical analysis, a price channel is an upper limit (called the resistance) and a lower limit (called the support) in which a security's price tends to stay. See More.
Price continuity occurs when the number of transactions (volume) does not in and of itself affect a security's price. See More.
Price discovery refers to the act of determining the proper price of a security, commodity, or good or service by studying market supply and demand and other factors associated with transactions. See More.
Price discrimination is the act of charging different customers different prices for the same good or service. See More.
Price efficiency simply refers to whether the price of a security incorporates all the available information about the security. See More.
Price elasticity of demand (PED) measures the change in the quantity demanded relative to a change in price for a good or service. See More.
Price fixing is an agreement among businesses to sell the same product or service at the same price. See More.
Price improvement is the often unexpected event of obtaining a better bid or ask price than the price quoted at the time the buy or sell order is made. See More.
Price inflation is simply an increase in the price of a good or service over time. See More.
Price leadership is the act of setting the price for a good or service in an industry. See More.
A price level adjusted mortgage (PLAM) is a mortgage with a fixed interest rate but an adjustable principal balance. See More.
In economics, a price maker is a monopolistic company that can dictate the prices of its goods because there are no substitutes for it. In trading, a price maker is a stockholder who controls a large number of shares and is able to affect the stock See More.
A price multiple is a ratio that combines some measure of a company's performance and the company's stock price. See More.
Price per flowing barrel is a measure of an oil and gas company's valuation as compared to the number of barrels of oil or gas it produces. See More.
Also called relative strength, price persistence is the tendency of a security's price to stay on trend relative to a market index such as the S&P 500. It is a measure of momentum. See More.
Price protection is an agreement between a buyer and a seller whereby the parties agree to fix the price of a good or service for a specific period of time. See More.
The price rate of change is simply the percentage change in a security's price between two periods. See More.
Also known as collusion or price fixing, price rigging occurs when a group of people or businesses agree to set the price for something. See More.
In consumer behavior, price sensitivity (also called the elasticity of demand) is the degree to which price affects the sales of a product or service. Thus, the formula for price sensitivity is: Price Sensitivity = % Change in Quantity Purchas See More.
Price stickiness refers to the price persistence of a good, service, security or economic measure (like wages) despite changing economic conditions. See More.
Price talk refers to discussions about the price of a pending initial public offering (IPO) or upcoming bond issue. See More.
A price target is an analyst's expectation for the future price of a security. See More.
Price transparency is the ability to know all of the bid prices, ask prices, and trading quantities for a given stock, good, or service at any point in time. See More.
A price war is an event whereby two or more companies continually lower prices to undercut each other. See More.
A price-based option is a derivative based on the price of an underlying debt security, usually a bond. See More.
The price-earnings relative is a comparison of a stock's P/E ratio to the cumulative P/E ratio of a related market index. See More.
Price-level targeting is an economic strategy whereby a central bank tries to reestablish an overall price level rather than reestablish a particular inflation rate. See More.
Price-takers, by definition, are not price makers. That is, they are not guaranteed profit makers, and they may even choose to make more product even if it’s not profitable to do so, just so they can maintain market share or achieve other objective See More.
The price-to-book ratio measures a company's market price in relation to its book value. The ratio denotes how much equity investors are paying for each dollar in net assets. Book value, usually located on a company's balance sheet as "stockholder See More.
The price-to-cash flow ratio (P/CF) is used to evaluate the price of a company's stock as compared to the amount of cash flow it generates. See More.
The price-to-earnings ratio (P/E) is a valuation method used to compare a company’s current share price to its per-share earnings. See More.
The price-to-free cash flow ratio (P/FCF) is a valuation method used to compare a company’s current share price to its per-share free cash flow. See More.
The price-to-innovation-adjusted earnings ratio is used to evaluate the price of a company's stock as compared to its earnings when adjusted for the amount the company spends on R&D. See More.
The price-to-research ratio is used to evaluate the price of a company's stock as compared to its ability to generate future profits from new products. See More.
The price-to-sales ratio helps determine a stock’s relative valuation. The formula to calculate the P/S ratio is:P/S Ratio = Price Per Share / Annual Net Sales Per Share See More.
The price-to-tangible book value ratio measures a company's market price in relation to its tangible book value. The ratio denotes how much investors are paying for each dollar of physical assets. See More.
A price-weighted index is an index in which the member companies are weighted in proportion to their price per share, rather than by number of shares outstanding, market capitalization or other factors. The Dow Jones Industrial Average (DJIA) is See More.
The price/earnings-to-growth and dividend yield ratio (PEGY) demonstrates how much the market is willing to pay for earnings growth and dividend yield. By incorporating dividend yield, the PEGY ratio accounts for a companies' inclination (or disi See More.
The PEG ratio is a derivative of the P/E ratio that takes into account future growth in earnings. See More.
"Priced out" refers to something being too expensive. Alternatively, priced out refers to the adjustment in a security's market price in response to new information. See More.
Pricing power is the effect the price of a good or service has on the demand for that good or service. See More.
When financial assets and markets -- as with the broader economy -- fall steadily for an extended period of time, it is known as a primary downtrend, or "bear market." See More.
When financial assets and markets -- as with the broader economy -- move in an upward direction for extended periods of time, it is known as a primary uptrend, or “bull market.” See More.
In the finance world, prime is short for prime rate, which is the interest rate commercial banks charge their most creditworthy customers, which are usually corporations. See More.
The prime rate is the interest rate commercial banks charge their most creditworthy customers, which are usually corporations. See More.
In finance, principal refers to the face amount of a debt instrument or an amount of money borrowed. See More.
Principal-only STRIPS are synthetic zero-coupon bonds that are based on the principal component of Treasury securities. See More.
A private company is different from a public company in that its stock is not traded on public exchanges like the New York Stock Exchange, Nasdaq, American Stock Exchange, etc. Instead, shares of private companies are offered, owned and traded privat See More.
Private equity is money for investments made directly in private companies or in public companies that become private. See More.
A private placement is an offering of securities that is not registered with the U.S. Securities and Exchange Commission (SEC) See More.
A private-purpose bond is a municipal bond that uses a significant amount of its proceeds to fund private activities or benefit private parties. See More.
A privately held company is different from a public company in that its stock is not traded on public exchanges like the New York Stock Exchange, Nasdaq, American Stock Exchange, etc. Instead, shares of privately held companies are offered, owned and See More.
A privately owned company is different from a publicly traded company in that its stock is not traded on public exchanges like the New York Stock Exchange, Nasdaq, American Stock Exchange, etc. Instead, shares of privately owned companies are offered See More.
Pro bono refers to any work or service that someone provides free of charge for the common good. See More.
Pro rata refers to the proportional distribution of a sum across a number of units. See More.
Probate court is a section of the court system that transfers money and property from the deceased to heirs, beneficiaries or other entities. See More.
Procurement is a purchasing process that controls quantity, quality, sourcing and timing to ensure the best possible total cost of ownership. See More.
The Producer Price Index (PPI) is used to measure the change over time of the average price of goods produced domestically. See More.
Productivity refers to the measure of output (e.g. products) from a production process per unit of input (e.g. labor and capital). See More.
Profit is the positive gain remaining for a business after all costs and expenses have been deducted from total sales. Profit is also referred to as the bottom line, net profit or net earnings. (See also profit margin.) See More.
The profit & loss (P&L) statement is one of the three primary financial statements used to assess a company’s performance and financial position (the two others being the balance sheet and the cash flow statement). See More.
Anyone interested in active investing, picking stocks or investigating the financial health of a company must know how to read financial statements, including the P&L. The importance of the information contained in the P&L cannot be overempha See More.
Profit before tax measures a company's operating and non-operating profits before taxes are considered. It is the same as earnings before taxes. See More.
Profit margin usually refers to the percentage of revenue remaining after all costs, depreciation, interest, taxes, and other expenses have been deducted. The formula is: (Total Sales - Total Expenses)/Total Sales = Profit Margin Note that pref See More.
A profit sharing plan gives employees a share in the company's profits. See More.
Profit taking is the act of selling stock to take advantage of a sharp rise in the stock price. See More.
A profit warning is a public communication from a company that its earnings will fall below expectations. See More.
Program trading refers to automated trading by investors using computer programs. See More.
A progressive tax is one in which the tax rate increases as the amount being taxed increases. Most western countries use a progressive tax in one way or another. See More.
A promissory note is a written document that binds one party to pay another through credit. The agreement is considered a debt instrument as it typically contains loan-type features such as the repayment terms, principal amount owed, interest rate, m See More.
A property lien is a lender's claim against a piece of real estate that may be legally sold should the borrower fail to repay a loan. See More.
Property tax is a tax on property -- usually real estate -- as determined by an assessor. See More.
Required by the Securities Exchange Commission (SEC), a prospectus is a legal document issued by companies that are offering securities for sale. The prospectus contains key facts and information about the company that could help investors make See More.
An investor employs a protective put strategy when he purchases a put option of a stock of which he already owns shares. See More.
A protective stop is a stop-loss order put in place to guard against losses beyond a specific threshold. See More.
A proxy is the common name for the Securities and Exchange Commission (SEC) Form 14-A (the "proxy statement"), which is the document containing the voting ballot and material information related to the propositions to be determined. See More.
A proxy statement is the common name for the Securities and Exchange Commission (SEC) Form 14-A. It is the document containing the voting ballot and material information related to the propositions to be determined. See More.
A public company is a company that is permitted to sell its registered securities to the general public. Also referred to as a "publicly-traded company." See More.
A public limited company is a company which offers equity shares with limited liability to public investors on a registered exchange. See More.
A public offering is a process of issuing new securities for sale to the public. See More.
Public offering price (POP) refers to the price at which shares of a company are issued in an initial public offering (IPO) See More.
The public option refers to a portion of Obamacare that would have created a Medicare-like health insurance policy that most U.S. residents could purchase as an alternative to purchasing policies from private health insurers. The public option was ev See More.
A public-purpose bond is a municipal bond that is used to fund projects that benefit the general public rather than private groups or individuals. Public-purpose bond contrast with private-purpose bonds, which use a significant amount their proceeds See More.
A publicly traded partnership is a limited partnership that is traded in a capital market. See More.
Pump and dump refers to an investment scam wherein optimistic, but untrue, statements are publicized about a specific stock in order to artificially increase the price through higher demand. See More.
Purchase protection is an agreement between a customer and a seller whereby the two sides agree to set the price of a good or service in place for a particular time period. See More.
Purchasing power is a phrase to describe the quantity of goods or services that a dollar can buy. A decrease in purchasing power is called inflation. See More.
A pure yield pickup swap describes an investing strategy where an investor exchanges lower yield bonds for higher yield bonds. See More.
A put bond permits the bond holder to force the issuer to repurchase the security before maturity. See More.
A put option is a financial contract between the buyer and seller of a securities option allowing the buyer to force the seller (or the writer of the option contract) to buy the security. See More.
Put-call parity refers to the relationship between put and call options for a given security, strike price and expiration date. Under put-call parity, the option prices should match, yielding no profit or loss. See More.
The put/call ratio is a popular sentiment indicator based upon the trading volumes of put options compared to call options. The ratio attempts to gauge the prevailing level of bullishness or bearishness in the market. See More.
Putable bonds are bonds that give the holder the right to sell his or her bond to the issuer prior to the bond's maturity date. See More.