Letter P Vocabulary Flashcards
The face value of a bond or stock as stated by the issuer.
Par Value
Earnings derived from a rental property, limited partnership, or other sources that are not directly tied to active labor.
Passive Income
An investment strategy that seeks to mimic the returns of a benchmark or index rather than actively selecting individual securities.
Passive Investing
A low-priced, speculative security of a small company, typically trading below $5 per share.
Penny Stock
A collection of investments held by an individual or institution.
Portfolio
A professional responsible for selecting and managing a collection of investments.
Portfolio Manager
Dividends that are paid to preferred stockholders before any dividends are paid to common stockholders.
Preferred Dividend
A class of stock that typically pays dividends before common stock and may have other preferential treatment but usually doesn’t carry voting rights.
Preferred Stock
The amount by which the price of a security exceeds its intrinsic or face value, also the cost of an insurance policy.
Premium
A valuation ratio calculated by dividing the current market price of a stock by its earnings per share.
Price-to-Earnings (P/E) Ratio
A valuation ratio calculated by dividing the current market price of a stock by its book value per share.
Price-to-Book (P/B) Ratio
A valuation ratio calculated by dividing the current market price of a stock by its revenue per share.
Price-to-Sales (P/S) Ratio
The market where securities are sold directly by the issuer to investors, often via public offerings.
Primary Market
The interest rate charged by banks to their most creditworthy customers, often used as a benchmark.
Prime Rate
The original amount of money borrowed or invested, excluding any interest or dividends.
Principal
Capital that is not listed on a public exchange, consisting of funds and investors that directly invest in private companies or conduct buyouts of public companies.
Private Equity
The sale of stocks, bonds, or securities directly to private investors, rather than on the open market.
Private Placement
The use of computer-generated algorithms to make large trades on the stock market.
Program Trading
An official document detailing the terms, conditions, and risks of an investment offering, typically associated with stocks or bonds.
Prospectus
Authorization given by a shareholder for someone else, often the company’s management, to represent and vote the shareholder’s stock at a company meeting.
Proxy
A financial contract giving the holder the right, but not the obligation, to sell an underlying asset at a specified price within a set period.
Put Option
