|
Here are Finance dictionary terms beginning with P.
Please note these definitions are all copyright of BusinessEconomics.com and no one is allowed to use them without express written confirmation from BusinessEconomics.com. Par Value the nominal face value of a security upon issue eg a £100 Treasury bill or a $1000 Eurobond. Passive Management a strategy that involves buying and holding shares usually to track a well known market index. Payout Ratio the percentage of earnings paid out in dividends. It is calculated as dividend per share divided by earnings per share. Perpetuity a security that pays out a constant stream of cash flows into the indefinite future with no redemption date. Pit a place where futures, options and other securities and commodities are traded via an open outcry system. Preference Shares shares where the holder is entitled to a given dividend. Holders of preference shares have a priority over ordinary shareholders with regard to dividends and also entitlement to a share of the assets should the firm go into liquidation. However they have a lower priority than debt holders. Present Value the value of a future series of cash flows at today’s value when discounted at a certain rate of interest. Price-Earnings (PE) Ratio the price of a share divided by the earnings per share after payment of tax. Primary Market the market where securities are sold when first issued. Private Banking Banking which specializes in providing services for wealthy clients. Private equity fund a privately equity partnership which invests a pool of capital. Usually used to purchase majority stakes in a variety of companies. Promissory Note a signed note promising to pay a specified sum of money on a given date. Purchasing Power Parity a theory that exchange rates are determined by relative goods prices in two countries. For example if the same car costs $40,000 in the US and £20,000 in the UK then the appropriate PPP rate is $2/£1. Put Option the right but not the obligation to sell a security/commodity/asset at a predetermined price. Copyright BusinessEconomics.com |
