Private Mortgage Insurance Protective insurance insulating lenders against risk of default by borrower. Typically, borrowers must take PMI when their loan exceeds 80% of the asset value. … [Read more...]
Private Unrequited Transfers
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Private Unrequited Transfers Remittance made by immigrant workers resident in foreign country back to their home country. Includes gifts, cash transfers, contributions and inheritances. … [Read more...]
Privatization
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Privatization Selling state managed and owned companies to private sector. Conversion of public sector enterprise to a private enterprise. … [Read more...]
Pro Forma Capital Structure Analysis
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Pro Forma Capital Structure Analysis Technique of assessing the influence of changes in capital structure on the credit status and financial results of a business. Used to evaluate if the business can make effective use of tax benefits projected. … [Read more...]
Pro Forma Statement
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Pro Forma Statement Statement showing financials predicting or projecting operating outcomes and balance sheet. Includes cash flow statements and pro forma income statement along with balance sheet. … [Read more...]
Probability
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Probability Possibility and relative likelihood that a specific result or outcome will occur among many possibilities. … [Read more...]
Probability Density Function
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Probability Density Function Used with continuous random variables to describe change in probability. … [Read more...]
Probability Distribution
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Probability Distribution Distribution of possible results of an occurrence in conjunction with probability of each result. Used to measure risk inherent in events. … [Read more...]
Probability Function
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Probability Function Assignation of a probable value or likelihood of occurrence to every possible result of a function. … [Read more...]
Problem Loan
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Problem Loan Loan given by bank that is over due for 90 days if it is a commercial loan or overdue for 180 days in case of consumer loan. Also referred to as non-performing asset. … [Read more...]
Product Cycle
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Product Cycle Production time taken for bringing in new or better products to sale point. … [Read more...]
Product Risk
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Product Risk Mortgage pipeline risk arising when loans are held by lender in production or product inventory but he does not have a pre arranged sale deal established at a specified price to balance the loan. … [Read more...]
Production Payment Financing
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Production Payment Financing Non-recourse financing based on assets where predetermined percentage share of revenue generated by selling the output of the project is diverted towards retirement of debt. … [Read more...]
Production-Flow Commitment
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Production-Flow Commitment Allowance given by purchaser of loan to have loan quota each month to be delivered in installments. … [Read more...]
Profit Margin
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Profit Margin Statistic to measure profitability. Calculated by measuring ratio of available earnings to stockholders in comparison with net sales. Formula: net income divided by revenue, both assessed over the same one-year period. … [Read more...]
Profitability Index
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Profitability Index Also termed benefit-cost ratio. Calculated by dividing current or present value of expected cash flows by the original investment amount. … [Read more...]
Profitability Ratios
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Profitability Ratios Tool to measure profitability of company. E.g.: Rate of return ratio evaluates performance in comparison with magnitude of investment. Profit margin evaluates performance with respect to sales. … [Read more...]
Pro forma Financial Statements
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Pro forma Financial Statements Accounting practice of adjusting financial statements so that planned dealings or projected dealings are reflected. … [Read more...]
Program Trades
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Program Trades Synchronizing the trades by simultaneous execution of trade instructions on several different stock dealings at the same time. Refer block trade, basket trade. … [Read more...]
Program Trading
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Program Trading Automatic trading system where trades take place based on signals captured from computer programs. Traders can directly execute transactions in this manner by linking to the computer system of the market. … [Read more...]
