Purchase Acquiring or creating an ownership by buying or having a long position. … [Read more...]
Purchase Accounting
Filed Under: p by
Purchase Accounting Accounting technique used with mergers. Acquirer is considered to have inherited all assets and liabilities of the acquired. These assets and liabilities are taken at fair market value to present an accurate picture. Goodwill is considered to be the difference … [Read more...]
Purchase Agreement
Filed Under: p by
Purchase Agreement Term used in project financing. Denotes an understanding to buy a predetermined quantity of output per time period arising from a project. … [Read more...]
Purchase and Sale
Filed Under: p by
Purchase and Sale Transaction in securities distribution. Securities firm buys securities for own accounts from the issuer at a specific price. These securities are then sold at a best efforts price. … [Read more...]
Purchase Fund
Filed Under: p by
Purchase Fund Similar to a sinking fund. The funds are, however, only used to buy bonds that are selling at a price beyond par value, unlike a sinking fund. … [Read more...]
Purchase Method
Filed Under: p by
Purchase Method Method by which an acquisition is valued in the accounts by using net asset values to consolidate the assets of both entities. Amortization/ depreciation will be greater in this method, decreasing the net income as a consequence when compared with the pooling method. … [Read more...]
Purchasing Power Parity
Filed Under: p by
Purchasing Power Parity Theory that in perfect markets, exchange rate of two currencies equalizes the purchasing power of both. … [Read more...]
Purchasing-Power Risk
Filed Under: p by
Purchasing-Power Risk Refer: inflation risk. Risk that sudden changes in prices of consumables adversely affect the investor’s actual return from investment. … [Read more...]
Pure-Discount Bond
Filed Under: p by
Pure-Discount Bond Single payment bond or zero coupon bond. Bond that yields a single principal and interest payment. … [Read more...]
Pure Expectations Theory
Filed Under: p by
Pure Expectations Theory Theory expounding the concept that forward rates denote rates that will prevail in future. Or the term or maturity of the security is based on future expectations of interest rates. Forward expectation rates for currency equal spot rate on that date. … [Read more...]
Pure Index Fund
Filed Under: p by
Pure Index Fund Portfolio managed in such a manner that it duplicates the market portfolio perfectly. … [Read more...]
Pure Yield Pickup Swap
Filed Under: p by
Pure Yield Pickup Swap Swap involving exchange of one bond into a higher yield variety. … [Read more...]
Put
Filed Under: p by
Put Opposite of call option. Allows holder the right to sell the security underlying the put. … [Read more...]
Put Bond
Filed Under: p by
Put Bond Bonds that can be exchanged by holders for par value at a specific date or extended for a specified number of years determined in advance. … [Read more...]
Put Option
Filed Under: p by
Put Option Option that gives investor or holder the right to sell at a specific price a specific number of shares within a time frame given in the options contract. For example, an investor with the right to make a sale of company shares at a predetermined price to protect his … [Read more...]
Put Price
Filed Under: p by
Put Price Sale price of an asset when holder of put option exercises this right. Also termed as exercise price or strike price. … [Read more...]
Put Provision
Filed Under: p by
Put Provision Provision that affords the bond holder of a floating rate debt security the right to ask for par value redemption at maturity. … [Read more...]
Put Ratio Backspread
Filed Under: p by
Put Ratio Backspread Combination of long and short positions in an investment to cover risk while increasing possibility of profit. … [Read more...]
Put Swaption
Filed Under: p by
Put Swaption Tool that gives an option to a buyer to undertake a swap with a floating rate. The new swap’s writer is now the receiver of the floating rate and the payer of the fixed rate. … [Read more...]
