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Superglossary - Finance Category: Economy and Finance > Finance Date & country: 16/12/2013, USA Words: 5410

Planned Amortization Class (PAC)
(1) The class of CMO that has the most stable cash flows and the lowest prepayment risk of any class

Planned Capital Expenditure Program
Budgeted or projected outlays for major expenditures on permanent or fixed assets as outlined in the

Planned Financing Program
Budgeted or projected ways need for reasons or to obtain short-term and long-term financing as outli

Planning Horizon
The length of time a model or investor or plan projects into the future.

Plant
The assets of a business including land, buildings, machinery, and all equipment permanently employe

Player
Used in the context of general equities. Customer or trader who is actively involved in a particular

Playing The Market
Trading in high, uncalculated risk usually refers to actions of amateur investors.

Plow Back
To reinvest earnings in a business rather than pay out them out as dividends. Common practice in hig

Plowback Rate
Related

Plug
A variable that handles financial slack in the financial plan.

Plus
Used to quote a price in 64ths. Dealers in government bonds normally give price quotes in 32nds. To

Plus A Match
Used for listed equity securities. Floor indication that someone is on the floor with equal priority

Plus Tick
Used in the context of general equities. Trade occurring at a price higher than the previous sale. U

Plus Tick Seller
Used for listed equity securities. A short seller (referring to the regulation requiring a plus tick

Point
The smallest unit of price change quoted, or one one-hundredth of a percent. Related

Point And Figure Chart
A price-only chart that takes into account only whole integer changes in price, i.e., a 2-point chan

Poison Pill
Anti-takeover device that gives a prospective acquiree's shareholders the right to buy shares of the

Poison Put
A covenant allowing the bondholder to demand repayment in the event of a hostile takeover.

Policy Asset Allocation
Way in which an investor seeks to assess an appropriate long-term 'normal' mix of assets that repres

Policy Limit
The maximum dollar amount of coverage provided by an insurance company for a certain policy.

Policy Loan
A loan often made at a below-market interest rate from an insurance company to a policyholder that i

Policyholder
An individual who owns an insurance policy.

Policyholder Loan Bonds
Packaged loans acquired by policyholders that are secured by the cash surrender value of the policie

Political Risk
Possibility of negative events such as expropriation of assets, changes in tax policy, restrictions

Pool
In capital budgeting, the concept that investment projects are financed out of a pool of bonds, pref

Pool Factor
The outstanding principal balance divided by the original principal balance with the result expresse

Pooling Of Interests
An accounting method for reporting acquisitions accomplished through the use of equity. The combined

Porcupine Provision
Often used in risk arbitrage. See

Portability
The character of benefits that may be carried from a previous job to the next.

Portfolio
A collection of investments, real and/or financial.

Portfolio Beta
Used in the context of general equities. The beta of a portfolio is the weighted sum of the individu

Portfolio Insurance
A strategy using a leveraged portfolio in the underlying stock to create a synthetic put option. The

Portfolio Internal Rate Of Return
The rate of return computed by first determining the cash flows for all the bonds in the portfolio a

Portfolio Management
Related

Portfolio Manager
Used in the context of general equities. Professional responsible for the securities portfolio of an

Portfolio Opportunity Set
The expected return/standard deviation pairs of all portfolios that can be constructed from a given

Portfolio R2
Used in the context of general equities. Number between 0 and 1 that measures the strength of correl

Portfolio Restructuring
Applies to derivative products. Recomposition of a portfolio's asset mix by selling off undesired as

Portfolio Separation Theorem
Theory that an investor's choice of a risky investment portfolio is separate from his attitude towar

Portfolio Turnover Rate
For an investment company, an annualized rate found by dividing the lesser of purchases and sales by

Portfolio Variance
Weighted sum of the covariance and variances of the assets in a portfolio.

Position
A market commitment; the number of contracts bought or sold for which no offsetting transaction has

Position Building
Buying shares to build up a long position or selling shares to create a short position in a particul

Position Diagram
Diagram showing the possible payoffs from a derivative investment.

Position Limits
Applies to derivative products. Maximum position available in any one future or option contract for

Position Self
Used in the context of general equities. Going long or short in anticipation of a stock's movement.

Position Sheet
Used in the context of general equities. List of long and short positions for an individual trader o

Position Trader
A commodities trader who takes a long-term approach in maintaining positions in the market and does

Positive Carry
Related

Positive Convexity
A property of option-free bonds that the price appreciation for a large downward change in interest

Positive Covenant (Of A Bond)
A bond covenant that specifies certain actions the firm must take. Also called an affirmative covena

Positive Yield Curve
When long-term debt interest rates are higher than short-term debt rates (because of the increased r

Possessions Corporation
A type of corporation permitted under the U.S. tax code whose branch operation in a U.S. possession

Post
Particular place on the floor of an exchange where transactions in stocks listed on the exchange occ

Post-Audit
A set of procedures for evaluating a capital budgeting decision after the fact.

Post-Dated Check
A check that becomes payable and negotiable on a future date specified.

Post-Trade Benchmarks
Prices after the decision to trade.

Postponement Option
The option of deferring a project without eliminating the possibility of undertaking it.

Postponing Income
Purposely delaying receipt of income to a later year in order to reduce current tax liability.

Pot
The portion of stock or bond issue that is returned to the managing underwriter by the participating

Pot Is Clean
Phrase used when managing underwriter has sold the entire pot.

Power Of Attorney
A written authorization allowing a person to perform certain acts on behalf of another, such as movi

PP and E
See Property, Plant & Equipment.

Pre-Sold Issue
An issue that is sold out before the coupon announcement.

Pre-Tax Earnings Or Profits
Net income before federal income taxes are subtracted.

Pre-Tax Rate Of Return
Gain on a security before taxes.

Pre-Trade Benchmarks
Prices occurring before or at the decision to trade.

Prearranged Trading
Possibly fraudulent practice whereby commodities dealers carry out risk-free trades at predetermined

Preauthorized Checks (PAC)
Checks that are authorized by a payer in advance, and written either by the payee or by the payee's

Precautionary Demand (For Money)
The need to meet unexpected or extraordinary contingencies with a buffer stock of cash.

Precautionary Motive
A desire to hold cash in order to be able to deal effectively with unexpected events that require ca

Precedence
The established system of priorities of trades in an exchange. For example, the highest bid and lowe

Precious Metals
Gold, silver, platinum, and palladium, which are used for their intrinsic value or for their value i

Precision
The scale at which forecast numbers are displayed. Choices include dollars, hundreds, thousands, and

Precompute
Method of charging interest in which the annual interest is either deducted from the face amount of

Preemptive Right
Common stockholders' right to anything of value distributed by the company.

Preference
Refers to over-the-counter trading. Selection of a dealer to handle a trade despite the dealer's mar

Preference Stock
A security that ranks junior to preferred stock but senior to common stock in the right to receive p

Preferred Dividend Coverage
Net income after interest and taxes (before common stock dividends) divided by preferred stock divid

Preferred Habitat Theory
A biased expectations theory that believes the term structure reflects the expectation of the future

Preferred Shares
Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be

Preferred Stock
Total dollar amount. Generally based on redemption or liquidation price.

Preferred Stock
A security that shows ownership in a corporation and gives the holder a claim, prior to the claim of

Preferred Stock Agreement
A contract for preferred stock.

Preferred Stock Ratio
Preferred stock at par value divided by total capitalization, which gives the portion of capitalizat

PREG
Financial ratio defined as stock price divided by sales over earnings growth. Often used in the valu

Preliminary Prospectus
An initial or tentative version of a prospectus.

Premium
(1) A bond sold above its par value. (2) The price of an option contract; also, in futures trading,

Premium Bond
A bond that is selling for more than its par value.

Premium Income
The income received by an investor who sells an option.

Premium Raid
An attempt to acquire a large portion of a company's stock to gain control by offering stockholders

Prepackaged Bankruptcy
A bankruptcy in which a debtor and its creditors pre-negotiate a plan of reorganization and then fil

Prepaid Expenses
Services, goods, and intangibles paid for prior to the period in which they provide benefit. Prepaid

Prepaid Interest
An asset account showing interest that has been paid in advance, which is expensed and charged to th

Prepayment Penalty
A fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity

Prepayment Speed
Also called speed, the estimated rate at which mortgagors pay off their loans ahead of schedule, cri

Prepayments
Payments made in excess of scheduled mortgage principal repayments.

Prerefunded Bond
Refunded bond.

Prerefunding
Procedure of floating a second bond at a lower interest rate in order to pay off the first bond at t

Presale Order
An order to purchase part of a new municipal bond issue that is accepted by an underwriting syndicat