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

Present Value
The amount of cash today that is equivalent in value to a payment, or to a stream of payments, to be

Present Value Factor
Factor used to calculate an estimate of the present value of an amount to be received in a future pe

President
Highest-ranking officer in a corporation after the chief executive officer.

Presidential Election Cycle Theory
A theory that stock market trends can be predicted and explained by the four-year presidential elect

Previous Balance Method
Method of calculating finance charges based on the account balance at the end of the previous month.

Price Change
Increase or decrease in the closing price of a security compared to the previous day's closing price

Price Compression
The limitation of the price appreciation potential for a callable bond in a declining interest rate

Price Discovery Process
The process of determining the prices of assets in the marketplace through the interactions of buyer

Price Elasticities
The percentage change in quantity divided by a percentage change in the price. Answers the question:

Price Gap
A term used when the price of a stock rockets or dives in a direction away from its last price range

Price Give
Used in the context of general equities. Willingness of a buyer or seller to negotiate on price, wit

Price Impact Costs
Related

Price Leadership
A price charged by the dominant producer that becomes the price adopted by all the other producers.

Price List
A schedule that associates prices with individual products. This list allows you to forecast sales i

Price Momentum
Related

Price Of Admission
Used in the context of general equities. Cost to become a player in a stock in an inordinately aggre

Price Persistence
Related

Price Range
The interval between the high and low prices over which a stock has traded over a particular period

Price Risk
The risk that the value of a security (or a portfolio) will decline in the future. Or, a type of mor

Price Spread
An options strategy that involves buying and selling two options on the same security with the same

Price Support
Government intervention to set an artificially high price through the use of a price floor designed

Price Takers
Individuals who respond to rates and prices by acting as though prices have no influence on them.

Price Value Of A Basis Point (PVBP)
Also called the dollar value of a basis point; a measure of the change in the price of a bond if the

Price-Book Ratio
Compares a stock's market value to the value of total assets less total liabilities (book value). De

Price-Earnings Ratio
Shows the multiple of earnings at which a stock sells. Determined by dividing current stock price by

Price-Earnings Ratio (P-E)
The market value of a company's stock divided by net income.

Price-Sales Ratio
Determined by dividing current stock price by revenue per share (adjusted for stock splits). Revenue

Price-Specie Flow Mechanism
Adjustment mechanism under the classic gold standard allowing disturbances in the price level in one

Price-Volume Relationship
A relationship espoused by some technical analysts that signals continuing rises or falls in securit

Price-Weighted Index
An index giving a greater influence to higher-valued stocks by weighting all component stocks by the

Priced Out
The market has already incorporated information, such as a low dividend, into the price of a stock.

Prices (Of Equity)
Price of a share of common stock on the date shown. Highs and lows are based on the highest and lowe

Pricey
Term used for an unrealistically low bid price or unrealistically high offer price.

Pricing Efficiency
Also called external efficiency; a market characteristic that prices at all times fully reflect all

Primary Dealer
Usually refers to the select list of securities firms that are authorized to deal in new issues of g

Primary Distribution
Sale of a new issue of stock or bonds, as distinguished from a secondary distribution.

Primary Earnings Per (Common) Share
Earnings available for the payment of dividends to common stockholders divided by the number of comm

Primary Market
Where a newly issued security is first offered. All subsequent trading of this security occurs is do

Primary Offering
Direct/Sale of a firm's newly issued shares by the firm to investors.

PRIME
Stands for prescribed right to income and maximum equity, a certificate that entitles the owner to t

Prime Paper
The highest-quality, investment-grade debt of corporations as decided by rating agencies such as Moo

Prime Rate
The interest rate that banks charge to their most creditworthy customers. The prime rate is an impor

Prime Rate
The interest rate at which banks lend to their best (prime) customers. More often than not, a bank's

Prime Rate Fund
A mutual fund that buys portions of corporate loans from banks and pays the interest to shareholders

Primitive Security
An instrument such as a stock or bond for which payments depend only on the financial status of the

Principal
(1) The total amount of money being borrowed or lent. (2) The party affected by agent decisions in a

Principal Amount
The face amount of debt; the amount borrowed or lent. Often called principal.

Principal Stockholder
A stockholder who owns 10% or more of the voting stock of a company. Such stockholders must report a

Principal-Agent Relationship
Occurs when one person, an agent, acts on the behalf of another person, the principal.

Principal-Only (PO)
A mortgage-backed security (MBS) whose holder receives only principal cash flows on the underlying m

Principle Of Diversification
That portfolios of different sorts of assets differently correlated with one another will have negli

Print
Used in the context of general equities. As a verb execute a trade, evidenced by its printing on the

Prior-Lien Bond
A bond usually arising from reorganization with precedence over another bond of the same issuing com

Prior-Preferred Stock
Preferred stock that has a higher claim on all dividends and assets in liquidation than claims of ot

Priority
Used for listed equity securities. System used in an auction market, in which the first bid or offer

Private Letter Ruling
A ruling by the IRS in response to a request for interpretation of a tax law.

Private Limited Partnership
A limited partnership with no more than 35 participants that is not registered with the SEC.

Private Market Value (PMV)
The break-up market value of all divisions of a company if divisions were each independent and estab

Private Mortgage Insurance (PMI)
Policy protecting the holder against loss resulting from default on a mortgage loan.

Private Placement
The sale of a bond or other security directly to a limited number of investors. For example, sale of

Private Unrequited Transfers
Resident immigrant workers' remittances to their country of origin as well as, e.g., gifts, dowries,

Private-Label Pass-Throughs
Related

Private-Purpose Bond
A municipal bond allowing more than 10% of the proceeds go to private activities.

Privatization
The transfer of government-owned or government-run companies to the private sector, usually by selli

Pro Forma Financial Statements
A firm's financial statements as adjusted to reflect a projected or planned transaction. 'What-if' a

Pro Forma Statement
A financial statement showing the forecast or projected operating results and balance sheet, as in p

Pro-Forma Financial Statements
A set of financial statements and other schedules that show projected results for a future period. T

Probability
The relative likelihood of a particular outcome among all possible outcomes.

Probability Density Function
The function that describes the change of certain realizations for a continuous random variable.

Probability Distribution
A function that describes all the values a random variable can take and the probability associated w

Probability Function
A measure that assigns a likelihood of occurrence to each and every possible outcome.

Proceeds Sale
OTC securities sale whose revenue is used to buy another security.

Producer Price Index (PPI)
Index measuring changes in wholesale prices, published by the U.S. Bureau of Labor Statistics every

Product Cycle
The time it takes to bring new and/or improved products to market.

Product Risk
A type of mortgage pipeline risk that occurs when a lender has an unusual loan in production or inve

Production Payment Financing
A method of nonrecourse asset-based financing in which a specified percentage of revenue realized fr

Production Rate
The coupon rate at which a pass-through security guaranteed by Ginnie Mae is issued.

Production-Flow Commitment
An agreement by the loan purchaser to allow a monthly loan quota to be delivered in batches.

Productivity
The amount of output per unit of input, such as the quantity of a product produced per hour of capit

Profile Buyer-Seller
Trader trying to get involved in a stock who presents self as a buyer-seller to draw a call from a c

Profit
Revenue minus cost. The amount one makes on a transaction.

Profit
Another term for net income.

Profit and Loss Statement (P and L)
Another term for the income statement.

Profit Center
A division of an organization held responsible for producing its own profits.

Profit Forecast
A prediction of future profits of a company, which may affect investment decisions.

Profit Margin
Indicator of profitability. The ratio of earnings available to stockholders to net sales. Determined

Profit Rate
Annual Earnings per share after taxes as a percentage of shareholders' equity capital per share at c

Profit Taking
Action by short-term securities traders to cash in on gains created by a sharp market rise, which pu

Profit-Sharing Plan
An incentive system providing that employees share in company profits through a cash fund or a defer

Profitability Index
The present value of the future cash flows divided by the initial investment. Also called the benefi

Profitability Ratios
Ratios that focus on how well a firm is performing. Profit margins measure performance with relation

Profitablity Stability
The complement of the standard deviation of annual profit rates from those which would have be plott

Program Trades
Orders requiring the execution of trades in a large number of different stocks at as near the same t

Program Trading
Trades based on signals from computer programs, usually entered directly from the trader's computer

Progress Payments
Periodic payments to a supplier, contractor, or subcontractor for work as it is completed as desired

Progress Review
A periodic review of a capital investment project to evaluate its continued economic viability.

Progressive Tax System
A tax system providing that the average tax rate increases for some increases in income, but never d

Project Financing
A form of asset-based financing in which a firm finances a discrete set of assets on a stand-alone b

Project Link
An econometric model forecasting and describing the effects of changes in different economies on oth

Project Loan Certificate (PLC)
A primary program of Ginnie Mae for securitizing FHA-insured and coinsured multifamily, hospital, an