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Personal Finance Glossary



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P

P & L Statement
"P & L statement" generally refers to the profit and loss (or income) statement of a... more
 
P/E Ratio
A "P/E ratio" refers to a corporation's stock price divided by the past annual earnings... more
 
Paid-in Capital
"Paid-in capital" refers to the capital a corporation receives from investors in exchange for the... more
 
Paid-up Capital
"Paid-up capital" refers to the amount of capital contributed by stockholders into a... more
 
Paper Gain
"Paper gain" refers to unrealized gain on securities based on a comparison of current market price... more
 
Paper Loss
"Paper loss" refers to unrealized loss on securities based on a comparison of current market price... more
 
Paper Profit
"Paper profit" refers to unrealized gain on securities based on a comparison of current market... more
 
Par
The term "par" in connection with finance transactions refers to the nominal or face value of a... more
 
Parent Company
A "parent company" refers to a company that can control a majority-owned or 100% owned subsidiary... more
 
Pari-passu
"Pari passu" is a Latin term meaning "equal in all respects". In finance transactions, pari passu... more
 
Partnership
A "partnership" generally refers to a business enterprise between two or more persons who agree to... more
 
Partnership Agreement
A "partnership agreement" is a contract among persons or entities (known as partners) that spells... more
 
Passive Income
"Passive income" for tax purposes means income from business activities in which the taxpayer does... more
 
Passive Loss
"Passive loss" refers to loss from activities in which a taxpayer does not materially participate,... more
 
Patent Assignment
A "patent assignment" is a contract transferring (assigning) ownership of a patent to a third... more
 
Pay in Kind Security
A "pay-in-kind security" is a security (such as bonds or preferred stock) in which the interest or... more
 
Payday Loan
A "payday loan" typically refers to a small, short-term loan without a credit check that is... more
 
Paying Agent
A "paying agent" is an agent who makes principal and interest payments to holders of bonds on... more
 
Payment in Kind Bonds
"Payment in kind bonds" refer to bonds whose interest is paid through the issuance of additional... more
 
Payroll Tax
A "payroll tax" is tax in which employers are required to withhold from employees' paychecks.... more
 
PBGC
The "PBGC" or "Pension Benefit Guaranty Corporation" is the federal body functioning under the... more
 
Penny Stock
Generally, a "penny stock" refers to a stock traded over-the-counter at less than $1 a... more
 
Pension
A "pension" is a sum of money paid regularly usually as a retirement... more
 
Pension Benefit Guaranty Corporation
The "PBGC" or "Pension Benefit Guaranty Corporation" is the federal body functioning under the... more
 
Pension Fund
A "pension fund" is a fund set up to pay pension benefits of a company's workers after... more
 
Pension Plan
A "pension plan" refers to a plan established and maintained by an employer or union to provide for... more
 
Periodic Rate
The "periodic rate" generally refers to the monthly effective interest rate on a credit card. For... more
 
Personal Finance
The term "personal finance" generally refers to financial planning for an individual or family.... more
 
Personal Guarantee
A "personal guarantee" is contract whereby an individual or entity takes responsibility for payment... more
 
Personal Income
The term "personal income" refers to income received by individuals, from all sources including... more
 
Personal Property
"Personal property" refers to property that is not real property. Examples of personal property... more
 
Philanthropist
A "philanthropist" is an individual who practices philanthropy, i.e., the practice of donating... more
 
Philanthropy
"Philanthropy" is the practice of donating personal wealth to charitable or similar... more
 
Phishing
"Phishing" is a form of Internet or email fraud that aims to steal valuable user and financial... more
 
Piggy Back Registration
A "piggy back registration" is where a holder of shares of a corporation is included in a public... more
 
PIK
"PIK" stands for "pay-in-kind" and refers to interest or dividends on bonds or preferred stock,... more
 
PIK Dividends
"PIK dividends" generally refer to dividends paid on preferred stock that are paid through the... more
 
Pink Sheets
"Pink sheets" refers to an electronic quotation system that displays quotes from dealers for a... more
 
PMI
"Private mortgage insurance" or "PMI" is an insurance policy protecting the holder of a mortgage... more
 
Points
"Points" in connection with mortgage loans refers to the loan origination fee charged by lenders. A... more
 
Poison Pill
A "poison pill" often refers to provision in a corporation's articles of incorporation or... more
 
Policyholder
"Policyholder" typically refers to the holder of an insurance... more
 
Ponzi Schemes
"Ponzi schemes" or "pyramid schemes" are illegal fraudulent schemes in which people are recruited... more
 
Portfolio
A "portfolio" is a collection of assets held by an investor, such as bonds, stocks, options, and... more
 
Portfolio Income
"Portfolio income" refers to income from such sources as dividends, interest, capital gains, and... more
 
Portfolio Management
"Portfolio management" is the process of managing money and investments, with the goal of... more
 
Portfolio Manager
A "portfolio manager" is a professional who actively manages an investment portfolio (stocks,... more
 
Power of Attorney
A "power of attorney" is a written legal document that authorizes a person to act as an agent on... more
 
Pre-Approval Letter
A "pre-approval letter" is a document from a mortgage lender that indicates a potential home buyer... more
 
Pre-Emptive Right
A "pre-emptive right" is the right of a shareholder to purchase shares in future offerings of the... more
 
Pre-Incorporation Agreement
A "pre-incorporation agreement" is a contract between two or more parties that sets forth that a... more
 
Predatory Lending
"Predatory lending" refers to lending practices that are unfair and abusive. For example, a lender... more
 
Preferred Stock
"Preferred stock" is a security of a corporation that gives the holder a claim, prior to the common... more
 
Preferred Stock Purchase Agreement
A "preferred stock purchase agreement" is a contract where an investor purchases preferred stock in... more
 
Preliminary Prospectus
A "preliminary prospectus" is a preliminary document used in connection with a proposed public... more
 
Premium
The term "premium" can have multiple meaning, including (1) the payments made under an insurance... more
 
Prenuptial Agreement
A "prenuptial agreement" is a contract entered into by two people prior to marriage. Prenuptial... more
 
Prepackaged Bankruptcy
A "prepackaged bankruptcy" is where a company and its creditors agree to a plan of reorganization... more
 
Prepaid Interest
"Prepaid interest" is interest paid in advance of its due date. Prepaid interest is charged in... more
 
Prepayment
"Prepayment" refers to the payment of all or a portion of a loan before its maturity date. Some... more
 
Prepayment Penalty
A "prepayment penalty" is a fee imposed by a lender in the event a loan is paid off before its... more
 
Prepayment Risk
"Prepayment risk" refers to the risk a borrower will prepay a mortgage or other loan (typically... more
 
Press Release
A "press release" is a public relations announcement by a company distributed to newspapers and... more
 
Price-Earnings Ratio
A "P/E ratio" refers to a corporation's stock price divided by past ("trailing") annual... more
 
Prime Rate
The "prime rate" is typically defined to mean the interest rate at which financial institutions... more
 
Principal Residence
A "principal residence" is the dwelling that a person lives in most of the time during... more
 
Privacy Policy
A "privacy policy" is a Web site's official statement on the type of user information it... more
 
Private Foundation
A "private foundation" is a nonprofit organization established and supported primarily by private... more
 
Private Investment Fund
A "private investment fund" is a fund primarily engaged in investing in securities, but, where the... more
 
Private Letter Ruling
A "private letter ruling" is a ruling by the Internal Revenue Service in response to a written... more
 
Private Mortgage Insurance
"Private mortgage insurance" or "PMI" is an insurance policy protecting the holder of a mortgage... more
 
Private Placement
A "private placement" is the offer and sale of securities to a limited group of investors without... more
 
Private Placement Memorandum
A "private placement memorandum" is a document that lays out the details of a securities investment... more
 
Probate
"Probate" is the legal process where a deceased's estate is administered and the assets from... more
 
Profit Warning
A "profit warning" is a statement by a publicly held company that its earnings will not be meeting... more
 
Promissory Note
A "promissory note" is a contract obligating one party to pay or repay a specified dollar amount to... more
 
Property
"Property" refers to assets of some kind, typically broken down into real property (homes,... more
 
Property Insurance
"Property insurance" is insurance that provides financial protection against the loss of, or damage... more
 
Property Management Agreement
A "property management agreement" is a contract between an owner of real estate and a person or... more
 
Property Tax
"Property tax" is a tax imposed by a state, city or municipality on real property based on its... more
 
Prospectus
A "prospectus" is a formal disclosure document used to sell securities, describing the issuer of... more
 
Proxy
A "proxy" is a written authorization from a stockholder that empowers someone to vote on the... more
 
Proxy Materials
"Proxy materials" are the documents used by corporations to solicit votes for corporate decisions,... more
 
Proxy Statement
A "proxy statement" is a document prepared by a corporation for dissemination to its stockholders,... more
 
Public Company
A "public company" is a company whose shares are traded on a stock exchange or in the... more
 
Public Offering
A "public offering" refers to the offering of securities by a company or organization to the public... more
 
Public Offering Price
A "public offering price" is the price offered to the public for new securities to be issued in a... more
 
Put
A "put," in the financial context, is an option giving the holder the right to sell an underlying... more
 
Put Bond
A "put bond" is a bond that gives the holder the right to require the issuer of the bond to redeem... more
 
Put Option
A "put option" is a financial instrument that gives the holder right to sell a given stock (or... more
 
Pyramid Scheme
"Pyramid schemes" or "Ponzi schemes" are illegal fraudulent schemes in which people are recruited... more
 

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