Performance Shares

definition

Performance Shares Proportion of stock disbursed to managers as a reward for performance. Performance is measured in terms of earnings per share and other parameters. Helps motivate management to actively work towards the goal of shareholders in improving business. … [Read more...]

Passive Portfolio Strategy

definition

Passive Portfolio Strategy Investment strategy aiming at diversifying the portfolio in line with an index to ensure good returns. Here securities are simply chosen to match the index rather than on any study of their future prospects. For e.g.: a portfolio consisting of all S&P 500 … [Read more...]

P&L

definition

P&L Stands for profit and loss statement. Random Finance Terms for the Letter P P&L P&S P2P P/E P/E Ratio P/E Effect PSA Pac-Man Strategy Pairoff Paper … [Read more...]

P&S

definition

P&S Statement showing purchase and sale, given by broker. Shows the final position of customer’s account after last transaction has been executed. Random Finance Terms for the Letter P P&L P&S P2P P/E P/E Ratio P/E Effect PSA Pac-Man Strategy Pairoff Paper … [Read more...]

P2P

definition

P2P In finance, denotes path to profitability. Strategy or approach followed by new business to transform into a profit making concern. Random Finance Terms for the Letter P P&L P&S P2P P/E P/E Ratio P/E Effect PSA Pac-Man Strategy Pairoff Paper … [Read more...]

P/E

definition

P/E Refer: Price/Earnings ratio. Random Finance Terms for the Letter P P&L P&S P2P P/E P/E Ratio P/E Effect PSA Pac-Man Strategy Pairoff Paper … [Read more...]

P/E Ratio

definition

P/E Ratio Stands for price per share divided by annual earnings for each share. Measures fair stock valuation in market. A share selling at $10 and earning $2 over a year has a value equal to 5 times as much as it earns. Random Finance Terms for the Letter … [Read more...]

P/E Effect

definition

P/E Effect Effect where portfolio with stocks showing low P/E ratios display higher returns (after adjusting for risk) than those having high P/E ratio. Random Finance Terms for the Letter P P&L P&S P2P P/E P/E Ratio P/E Effect PSA Pac-Man Strategy Pairoff Paper … [Read more...]

PSA

definition

PSA Used to manage risk inherent in prepayment. Assumes increase in prepayments with a cap at 30 months. Helps assess speed of prepayment in new loans. 0.2% is the standard increase amount denoting a 2% increase in rate every month until the 30th month. Random Finance Terms … [Read more...]

Pac-Man Strategy

definition

Pac-Man Strategy Defense used when facing business takeover. The business that is identified for takeover launches a tender for the prospective acquirer’s business. Random Finance Terms for the Letter P P&L P&S P2P P/E P/E Ratio P/E Effect PSA Pac-Man … [Read more...]

Pairoff

definition

Pairoff Repurchase or buy back to set off or cancel, in effect, a previous sale of securities. Random Finance Terms for the Letter P P&L P&S P2P P/E P/E Ratio P/E Effect PSA Pac-Man Strategy Pairoff Paper … [Read more...]

Paper

definition

Paper Instruments available in the money market such as commercial paper. Random Finance Terms for the Letter P P&L P&S P2P P/E P/E Ratio P/E Effect PSA Pac-Man Strategy Pairoff Paper … [Read more...]

Paper Gain (Loss)

definition

Paper Gain (Loss) Difference between market price and cost of acquisition of securities in portfolio that translates into unrealized capital gains. Random Finance Terms for the Letter P Paper Gain (Loss) Par Value Parallel Loan Parallel Shift in the Yield … [Read more...]

Par Value

Par Value Amount that issuer will pay back when maturity date arrives. Also termed face value or maturity value. Random Finance Terms for the Letter P Paper Gain (Loss) Par Value Parallel Loan Parallel Shift in the Yield Curve Parameter Parity Value Partial … [Read more...]

Parallel Loan

definition

Parallel Loan Technique used to curtail foreign exchange fluctuation risks wherein two businesses based in different countries lend their domestic currency to each other. A time is decided for repayment at which the loans are paid back. Also called back-to-back loans. Random … [Read more...]

Parallel Shift in the Yield Curve

definition

Parallel Shift in the Yield Curve A change in the yield curve that is duplicated across different maturities. The change is evaluated in basis points and compared with that of securities having different maturities. E.g.: a 50 basis point increase in 1 year T Bill being matched by … [Read more...]

Parameter

definition

Parameter Also refer: exogenous variable. Coefficient, whose value is determined from the underlying data in a model. Such parameters are used characterize an element of the model. Random Finance Terms for the Letter P Paper Gain (Loss) Par Value Parallel Loan Parallel … [Read more...]

Parity Value

definition

Parity Value Value when a convertible security is converted with immediate effect. Also called convertible value or conversion value Random Finance Terms for the Letter P Paper Gain (Loss) Par Value Parallel Loan Parallel Shift in the Yield Curve Parameter Parity … [Read more...]

Partial Redemption

definition

Partial Redemption Withdrawal of part of value by owner of a security as required by him so that the balance is still locked in an investment yielding returns. Random Finance Terms for the Letter P Paper Gain (Loss) Par Value Parallel Loan Parallel Shift in the Yield … [Read more...]

Participating GIC

definition

Participating GIC Policyholder is not given guaranteed returns in this Guaranteed Investment Contract. Returns receivable depend on the performance of portfolio of assets held by issuing insurer. Random Finance Terms for the Letter P Paper Gain (Loss) Par Value Parallel … [Read more...]