Foreign Exchange Market, forex dictionary, FX News, forex definition

Here you'll find the most important definitions, terms, and abbreviations you'll come across in the Forex business.
If you're just setting your first steps into the world of Forex trading I suggest you check out the Forex ebooks first and bookmark or print this page for future reference.

P&L: Acronym for profit and loss statement.
P/E ratio: Acronym for price/earnings ratio, which refers to a common measure of the degree...
PAB: The ISO currency code for the Panamanian Balboa. Learn more about Panama and the Panamanian Balboa at GoCurrency.com
Pacific Rim: The Far Eastern countries and markets bordering the Pacific Ocean, consisting...
package mortgage: A type of mortgage, including the furniture and other personal property in addition to the house.
paid: A payment made on an obligation.
paid up: The case in which all payments due have been paid.
paid-in capital: The capital received from investors for stock, equal to capital stock plus paid-in capital. Also known as contributed capital.
paid-in surplus: The price paid by investors per share at issue minus the par value per share,...
painting the tape: The illicit practice of traders buying and selling a specific security among...
pairs trade: The establishment of a long position in one stock and a short position in another...
Pakistani Rupee: The official currency of Pakistan. Learn more about Pakistan and the Pakistani rupee at GoCurrency.com
Panamanian Balboa: The official currency of Panama. Learn more about Panama and the Panamanian Balboa at GoCurrency.com
panic: The sudden, widespread fear of economic or market collapse.
paper: A short-term debt security.
paper asset: An asset that is not readily usable or convertible to cash.
paper dealer: A dealer who buys commercial paper, and resells it at a lower interest rate, in order to realize a profit.
paper gold: A measure of a country's reserve assets in the international monetary system. Also known as Special Drawing Rights (SDR).
paper loss: A loss that has occurred, but not realized through a transaction, (i.e. a stock...
paper profit: A profit that has occurred, but not realized through a transaction, (i.e. a...
paper trading: The making of simulated, moneyless transactions to practice or test theories.
paper trail: The recorded documents that outline a process, activity, or event.
Papua N. G. Kina: The official currency of Papua New Guinea. Learn more about Papua New...
par: The face value of a bond. Generally $1,000 for corporate issues, with higher...
par bond: A bond selling at its face value.
par value: The face value of a bond. Generally $1,000 for corporate issues, with higher...
Parabolic SAR: Parabolic SAR was developed by Welles Wilder. It is a time/price trend following...
Paraguay Guarani: The official currency of Paraguay. Learn more about Paraguay and the Paraguayan Guarani at GoCurrency.com
parallel importing: The case in which an importer finds a cheaper price of a good or equivalent...
parallel loan: An arrangement in which two companies in different countries borrow each other's...
parent company: A firm that owns enough voting stock in another firm to control management and...
Parent Loans for Undergraduate Students: Abbreviated as PLUS, refers to a non-need-based loan made to the parents of...
Pareto's Law: A rule of thumb that twenty percent of a population earns eighty percent of its income.
pari passu: A term in venture capital term sheets, indicating that one series of equity...
Paris Club: A term used to describe the point at which a debtor nation meets with creditor nations to renegotiate its official debt.
parity: Equality, as in amount
parity price: A price for a commodity that is pegged to another price.
parking: The putting of assets into a safe investment (i.e. a money market account),...
partial release: A mortgage provision permitting some of the pledged collateral to be released if certain requirements are met.
partial spinoff: The case in which a parent firm sells a minority share of a child firm. Also known as carve-out.
partial surrender: The removal of a portion of the original cash balance of an insurance policy or annuity.
partially amortized loan: A loan that is partially repaid by amortization during one portion of the term, and partially repaid at the end of the term.
participating dividend: The dividend paid on participating preferred stock. This is an unusual dividend...
participating GIC: A type of GIC in which the policyholder is not guaranteed a specific return,...
participating insurance: An insurance policy that pays a dividend to its holder.
participating preferred: A preferred stock which, in addition to a regular dividend, also pays an additional dividend.
participating trust: An SEC-registered investment firm that purchases a fixed, unmanaged portfolio...
participation: An ownership interest in a mortgage or other loan.
participation certificate: A type of financing in which an individual buys a share of the lease revenues...
participation loan: A loan made by more than one lender.
Participation Rate - Australia: The seasonally-adjusted proportion of the entire population that is currently...
partition: A divide that separates.
partner: An individual who is a member of a partnership.
partnership: A type of business organization in which two or more individuals manage and...
party: In finance, a party is an entity involved in a transaction or agreement....
pass-through: A security signifying pooled debt obligations, passing income from debtors to...
pass-through coupon rate: The interest rate paid on a pass-through security.
passbook: A book issued by a bank or savings institution in order to record deposits,...
passive income: The income originating from real estate and business investments, where the...
passive investor: An investor who does not play an active role in the daily activities of a particular business.
passive loss: The case in which passive income is negative.
passive management: A money management strategy that attempts to match the return and risk characteristics...
passive market-making: A process that permits a market maker to be both the underwriter and buyer of a firm's securities in a secondary public offering.
past-due balance method: A technique for calculating finance charges in which no interest is charged...
patent: The exclusive right granted by a government to an inventor to manufacture, use,...
patent pending: A statement issued by the U.S. Patent Office, informing the applicant that a patent has been applied for, but not yet granted.
patronage dividend: A taxable distribution made by a cooperative to its members.
pattern: The formation on a technical analysis chart, outlining recent price movements. Also known as trading pattern.
pattern day trader: An SEC title applying to any individual who buys and sells a particular security...
pawn broker: A small lender who lends money at a high interest rate, and holds some of the borrower's personal goods as collateral.
pay: The process of compensating a party for the delivery of goods or services....
payable date: The date on which a dividend will be paid to its shareholders.
payables: An item on a balance sheet, which equals the sum of all money owed by a firm....
payback: The break-even point of an investment.
payback period: The amount of time needed to break even on an investment.
paydown: The repayment of part of an outstanding loan balance.
payee: An individual who receives a form of payment (i.e. cash, check, money order, or promissory note).
payer: An individual who makes a payment.
paying agent: An agent who makes dividend payments to stockholders or principal and interest payments to bondholders.
payment: The partial or complete discharge of a financial obligation in the form of the transfer of funds, assets, or services.
payment date: The date on which a dividend, mutual fund distribution, or bond interest payment...
payment for order flow: The practice by the securities industry of providing a monetary incentive for...
payment in kind: A payment made in the form of goods and services, as opposed to cash.
payment-in-kind security: A bond paying interest in the form of additional bonds, or a preferred stock...
payoff diagram: A chart of the profits and losses for a particular options strategy prepared...
payout: The expected financial return from an investment over a given period of time....
payout period: The dividends per share, divided by earnings per share.
payout ratio: The dividends paid divided by firm earnings over some period of time, expressed...
payroll: 1 Total amount a business pays periodically for its workers. 2 List of employees,...
PBGC: Acronym for Pension Benefit Guaranty Corporation, which refers to a federal...
PCE Deflator, (Personal Consumption Expenditure Deflator) - United States: A measure of inflation based on changes in personal consumption. Unlike the...
peace dividend: The reallocation of spending from defense purposes to peacetime purposes (i.e. housing, education, and social projects).
peak: The highest price, value or rate reached.
PEG ratio: A stock's price to earnings ratio divided by its year-over-year earnings growth rate
pegging: The holding of prices or exchange rates over some time period.
PEN: The ISO currency code for the Peruvian Sol. Learn more about Peru and the Peruvian Sol at GoCurrency.com
penalty: A fee imposed as a consequence for a violation of a rule.
Pending Home Sales - United States: Tracks residential housing contract activity of existing single-family homes....
pennant: In technical analysis, refers to a chart pattern occurring when the trading...
penny stock: Stocks that trade at market prices below one dollar per share. Usually, any...
penny stock, SEC definition: The term "penny stock" generally refers to low-priced (below $5), speculative...
pension: A fixed amount, other than wages, paid at regular intervals to a person or to...
pension benefit: A payout from a retirement plan, generally distributed to the employee as an annuity.
Pension Benefit Guaranty Corporation: Abbreviated as PBGC, refers to a federal corporation established under ERISA,...
pension fund: A fund set up for a pension plan.
pension plan: A fixed amount, other than wages, paid at regular intervals to a person or to...
pension reversion: The conclusion of a pension plan, undertaken by a firm with an overfunded pension plan in order to reclaim the surplus assets.
people pill: A type of poison pill action in which most or all of the current management...
per: Signifying, for each.
per capita: Statistically accepted as average per person. Per Capita is used to quantify...
per capita income: Per Capita Income is derived by dividing total personal income (in the US, an...
per diem: Occurring daily. The phrase is latin for 'per day', and is often used when referring to daily employee expenses or reimbursements.
per se: by, of, for, or in itself; intrinsically.
per stirpes: A method for distributing the estate of a deceased individual, which specifies...
percent held by institutions: The percentage of outstanding common shares being held by institutional investors (i.e. pension plans).
perfect capital market: A market without any arbitrage opportunities.
perfect competition: A type of market in microeconomic theory in which no single firm has market control over prices.
perfect hedge: A hedge that eliminates the risk of another investment.
perfect title: A title that is free of liens and legal questions as to ownership of the property,...
perfecting title: The correction of flaws or defects in a title.
performance: The results of activities of an organization or investment over a given time period.
performance bond: A bond issued by an insurance firm to guarantee satisfactory completion of a project by a contractor.
Performance of Manufacturing Index (PMI) - New Zealand: A measure of business sentiment for the New Zealand Manufacturing sector. The...
performance-based compensation: A fee paid to the general partner of a hedge fund as an incentive; the amount...
peril: Anything with the potential of causing loss.
period: An interval of time.
periodic payment plan: The process of making regular contributions, generally monthly, to a mutual...
perk: Abbreviation for perquisite, refers to an employee benefit or incentive.
Perkins loan: A need-based, low-interest loan available to students as opposed to their parents....
permanent capital: The sum of common stock, preferred stock, and retained earnings.
permanent financing: A long-term debt or equity financing plan, generally used to purchase or develop...
permanent life insurance: A type of life insurance encompassing a death benefit similar to a term life...
permission marketing: A marketing technique that requires the approval of the client to which the technique is targeting.
permit: A document providing for the legal authorization to conduct an activity.
perpendicular spread: The act of purchasing options with the same expiration dates but different strike prices.
perpetual: The quality of having no expiration date.
perpetual inventory: Perpetual Inventory is an inventory accounting system which allows firms to...
perpetuity: See in perpetual.
Personal Consumption Expenditure (PCE) - United States: Comprehensive measure of how much consumers spend each month, counting expenditures...
Personal Consumption Expenditures: Abbreviated as PCE, refers to those funds spent on goods and services targeted...
personal exemption: An amount excluded from taxable income, granted to any taxpayer who cannot be claimed as a dependent by another taxpayer.
Personal Financial Specialist: Abbreviated as PFS, refers to a certified public accountant who also offers...
personal guarantee: A promise made by an entrepreneur, obliging him to personally repay debts on which his corporation defaults.
personal identification number: Abbreviated as PIN, refers to the code used by an individual so that he can access his bank account at an ATM machine.
personal income: An individual's aggregate earnings from wages, passive incomes, and investment interest and dividends.
Personal Income - United States: Broad gauge of employee earnings in the US . Personal Income measures the pre-tax...
Personal Injury Protection: Abbreviated as PIP, refers to an extension of car insurance available in some...
personal interest: The interest accrued on personal loans and consumer purchases.
personal property: Any form of property, other than real estate, owned by an individual. Also known as chattel.
Peruvian New Sol: The official currency of Peru. Learn more about Peru and the Peruvian Sol at GoCurrency.com
petrodollars: Any payment to oil-producing countries, especially those in the Middle East, and deposited in Western banks.
petty cash: A small amount of cash left readily available by a business for incidental expenses.
PFS: Acronym for Personal Financial Specialist. A Certified Public Accountant who...
PGK: The ISO currency code for the Papua New Guinea Kina. Learn more about...
phantom income: Any reportable or taxable income that does not generate cash flow (i.e. taxable income from zero coupon bonds).
phantom option plan: A form of bonus compensation for an employee, where the employee receives a...
Philadelphia Fed Survey - United States: Survey conducted by the Philadelphia Fed questioning manufacturers in the Third...
Philippines Peso: The currency of Philippines.See GoCurrency World Currencies Page & Currency Converter
phone switching: The capability of transferring money between funds in the same mutual fund family by telephone request.
PHP: The ISO currency code for the Philippines Peso.
physical commodity: The commodity delivered to the contract buyer at the completion of a commodity...
physical market: A type of market in which commodities, such as grain, gold, crude oil, or RAM...
physical option: The right to purchase a physical commodity, as opposed to a stock, index, or...
physicals: The commodity delivered to the contract buyer at the completion of a commodity...
pickup: The value gained in a bond swap for which the bond purchased has a higher yield than the bond sold.
pickup bond: A type of callable bond that has a high coupon rate and whose callable date...
piggyback loan: The case in which two lenders participate in the same loan.
piggyback registration rights: The rights of an investor to register and sell his or her unregistered stock in the event that the firm conducts an offering.
PIN: Acronym for Personal Identification Number. The code used by an individual so...
Pink Sheets: A daily listing of bid and ask prices for the major over-the-counter stocks,...
pink slip: An employee’s notice of termination.
pip: Pip or "percentage in point," refers to the very last digit of a currency price....
PIPE: Acronym for Private Investment in Public Equity, refers to a transaction in...
pipeline: The flow of upcoming underwriting deals.
pit: A circular area on the exchange's floor where the trading of a specific futures contract or option contract occurs.
Pitcairn Is Dollar: The currency of Pitcairn.See GoCurrency World Currencies Page & Currency Converter
pitch: The set of activities intended to persuade someone to buy a product or take a specific course of action.
PITI: Acronym for principal, interest, taxes, and insurance, the four components of a mortgage payment.
pivot point: A technical indicator determined by averaging a particular stock's high, low,...
PKR: The ISO currency code of Pakistan. Learn more about Pakistan and the Pakistani rupee at GoCurrency.com
placed-in-service date: The date on which an asset becomes available for use by a particular business.
placement: The act of selling new securities.
plaintiff: The party that files a lawsuit.
plan asset: An asset in a retirement plan that serves as an investment vehicle for participating employees.
plan sponsor: An employer who sets up a pension plan.
planning: The process of making plans, developing strategies, and outlining the logistics of a situation.
plant: A long-term, tangible asset held for business use and not expected to be converted...
plateau: A formation on a data analysis chart in which a price experienced very little up or down movement during a given time period.
play: A speculative investment.
playback: The recording of a firm's quarterly earnings announcement.
pledge: See pledging.
pledging: The offering of assets to a lender to be used as collateral for a loan.
PLN: The ISO currency code for the Polish Zloty.
plow back: The action of a firm reinvesting its earnings into building its core business,...
plunge: A sudden, acute decline in a security's price or an overall market.
PLUS loan: Acronym for Parent Loans for Undergraduate Students.
plus tick: A stock market transaction (or sometimes, a quote) at a price higher than the...
plus tick rule: SEC rule requiring short sales to be made only on an uptick or zero-plus tick....
PMI: Acronym for Private Mortgage Insurance. Mortgage insurance provided by nongovernment...
PMI Services (Survey) - German - Euro-zone: Gauge for the overall performance of the German service sector. The Services...
PMV: Acronym for Private Market Value. The value of a firm if each of its parts were...
point: Price changes are normally quoted in percentage points and are often denoted...
point of sale: Abbreviated as POS, refers to the physical location at which goods are sold to clients.
point-and-figure chart: A chart which plots price movements only, without measuring the passage of time.
points: Finance charges paid by the borrower at the beginning of a loan. One point is 1% of the loan amount.
poison pill: Any tactic by a firm designed to avoid a hostile takeover. One example is the...
policy: A contract of insurance, describing the term, coverage, premiums and deductibles. Also known as insurance policy.
policy limit: Maximum lifetime benefit of a given insurance policy; often $1 million, although some policies have no limit.
policy loan: A loan made by an insurance firm to a policyholder on the security of the cash value of the policy
policy surrender: The early termination of an insurance product by the policyholder.
policyholder: The owner of an insurance policy; generally, but not always, the insured.
Polish Zloty: The currency of Poland.See GoCurrency World Currencies Page & Currency Converter
political risk: The risk of loss when investing in a given country caused by changes in a country's...
Ponzi scheme: A pyramid scheme.
pool: Group of related financial instruments, such as mortgages, combined for resale...
pool factor: Outstanding mortgage pool principal divided by the original principal balance, and expressed as a decimal between 0 and 1.
pooled fund: Any fund in which multiple investors contribute assets and hold them as a group....
pooling of interests: One method of accounting for a firm merger, in which the balance sheets of the...
population: A group of individuals or items that share one or more characteristics from which data can be gathered and analyzed.
portability: The ability of an employee to retain benefits, such as a pension plan or insurance coverage, when switching employers.
PORTAL: The NASD's system for secondary trading of unregistered securities in transactions...
portfolio: A collection of investments all owned by the same individual or organization....
portfolio insurance: A strategy of hedging a stock portfolio against market risk by selling stock...
portfolio management: An individual who controls the assets of a mutual fund. The portfolio manager...
portfolio manager: An individual who controls the assets of a mutual fund. The portfolio manager...
portfolio theory: see modern portfolio theory.
portfolio tracking: Monitoring a collection a stocks, whether held in a real or imaginary portfolio,...
portfolio turnover: The rate of trading activity in a fund's portfolio of investments, equal to...
Portuguese Escudo: The official currency of Portugal. Learn more about Portugal and the Portuguese Escudo at GoCurrency.com
POS: Acronym for Point Of Sale. The physical location at which goods are sold to clients.
position: The total amount of a security that the trader is either long or short that...
position limit: The maximum number of listed option contracts on a single security which can...
position trader: Commodities trader who, unlike most traders, takes a long-term, buy and hold...
positioning: In the FX markets, positioning refers to the placement of a trade in reference...
positive carry: Condition in which the cost of financing an investment is less than the return...
Positive Sloping Triangle: With ascending triangles, trend lines converge with a horizontal trend line...
Positive Volume Index: Abbreviated as PVI, refers to an index that tries to determine the actions of...
positive yield curve: A case in which long-term debt instruments have higher yields than short-term...
possession: The control and occupancy of property.
post: The site at which transactions in the listed stocks occur.
post-money valuation: The valuation of a firm following its latest round of funding, and equivalent...
postdate: To put a future date on a document or check, postponing when it becomes effective or negotiable.
posting: The process of transferring entries from a journal of original entry to a ledger book.
pot: The portion of a new issue, set aside by the lead underwriter for distribution...
pour-over will: A provision in a will, outlining that certain assets are to be transferred (poured over) to a trust.
power: The capability to act with force.
power of appointment: A right, granted in a written instrument such as a will or trust, permitting...
Power of Attorney: A legal document allowing a person to assign another person, called the attorney...
PPI: Producer Price Index - PPI - measures changes in the selling price producers...
PPO: Acronym for Preferred Provider Organization. A health care organization composed...
Pre-Budget Report - UK: A Pre-Budget Report (PBR) is delivered by the Chancellor to the House of Commons...
pre-depreciation profit: The profit prior to consideration of non-cash expenses.
pre-existing conditions: The medical conditions existing before a health insurance policy was issued.
pre-money valuation: A firm's valuation right prior to its latest round of financing.
pre-syndicate bid: A bid entered before the effective date of a secondary offering, made to stabilize the price during distribution.
pre-tax profit margin: The net profit before taxes, divided by net sales.
prebilling: The issuance of an invoice prior to the good or service being provided.
precedence: The right to precede in order, rank, or importance; priority
precious metals: Any of the following metals: gold, silver, platinum, and palladium.
predatory lending: Any kind of fraudulent, deceptive, discriminatory, or unfavorable lending practices.
predatory pricing: An anti-competitive measure employed by a firm in order to protect market share...
preempt: To act in advance; to prevent.
preemptive right: The right of current shareholders to maintain their fractional ownership of...
preference shares: A class of ownership in a corporation that has a higher claim on the assets...
preferred debt: A type of debt that takes precedence over other debts.
Preferred Provider Organization: Abbreviated as PPO, refers to a health care organization composed of physicians,...
preferred shares: A class of ownership in a corporation that has a higher claim on the assets...
preferred stock: A class of ownership in a corporation that has a higher claim on the assets...
preforeclosure sale: A procedure in which a lender permits a mortgagor to avoid foreclosure by selling...
preliminary official statement: The initial document published by an underwriter of a new municipal securities offering.
preliminary prospectus: The initial document published by an underwriter of a new issue of stock, and...
premature distribution: The withdrawal before the age of 59 ½, from a qualified retirement plan; generally accompanied by a penalty.
premise: The underlying rationale or basis for an argument.
premises: A tract of land including its buildings.
premium: The amount by which a bond or stock sells above its par value.
premium bond: A bond whose selling price exceeds its par. Opposite of discounted bond.
premium income: The income received from selling an option.
premium over bond value: The absolute difference between the market price of a convertible bond and the...
premium over conversion value: The absolute difference between the market price of a convertible security and the price at which it is convertible.
premium raid: An offer to purchase shares in a firm from current shareholders at a premium...
prepaid interest: The interest paid before it is earned.
prepayment: The payment of all or part of a debt preceding its due date.
prepayment penalty: A penalty sometimes burdened on a borrower who makes a prepayment.
prepayment privilege: A clause in certain loans, permitting the borrower to pay off the debt prior...
prepayment risk: The likelihood that homeowners will pay off their mortgage loans early (i.e....
prepayment speed: The average rate at which mortgage holders are expected to pay off their loans....
prequalification: The act of determining how much a prospective home buyer might be eligible to borrow before he or she has applied for a loan.
prerefunding: The issuing of a longer-maturity bond in order to pay off an earlier bond, in...
preretirement survivor annuity: A condition of a retirement plan that permits the dependents of a vested employee...
present value: The current value of one or more future cash payments, after taking into consideration...
preservation of capital: A conservative investment strategy characterized by a desire to avoid risk of loss.
President: The highest ranking officer in a corporation, following the Chairman of the...
pretax: The price before the levying of taxes.
previous balance method: A technique used to calculate finance charges on a credit card account, taking...
price: The value or cost of an asset, typically expressed in monetary terms. For...
Price and Volume Trend: The Price and Volume Trend (PVT) is a cumulative total of volume adjusted according...
price change: The change in the price of a security from one day's close to the next day's close.
Price Channel: Bound by a lower and upper trendline, the price channel is a continuation pattern...
price discovery: The process of determining market prices by virtue of market interactions between buyers and sellers in a free marketplace.
price divergence: Situation where indicators suggest trend in a different direction than price...
price efficiency: The level to which the prices of assets reflect the available marketplace information.
price fixing: Establishing the price of a good or service, as opposed to permitting it to be determined naturally through free market forces.
price gap: A significant price movement of a security or commodity between two trading sessions. Also known as gap.
price index: Any index that tracks inflation by measuring price changes (i.e. the Consumer Price Index and the Producer Price Index).
price leadership: An economic term referring to a situation in which a market leader sets the...
price limit: The highest and lowest prices that a commodity or option is allowed to reach...
price persistence: The change in price of a stock over a period of time relative to that of a market...
price range: The lowest and highest prices reached by a given security over a specified period...
price risk: The risk associated with a given security or physical commodity.
price skimming: A pricing technique designed to allow a business to charge each potential client...
price spread: An option strategy utilizing the simultaneous purchase and sale of options of...
price support: The minimum government-set price for a good, supported by payments to producers...
price to book ratio: A stock's capitalization divided by its book value. The value is the same whether...
price to cash flow ratio: A stock's capitalization divided by its cash flow for the latest fiscal year....
price to earnings: See price/earnings ratio.
price to earnings ratio: A common measure of the degree of expensiveness of a stock. The P/E ratio is...
price to sales ratio: The ratio of a stock's capitalization to its sales over the trailing 12 months....
Price Value of a Basis Point: Abbreviated as PVBP, which refers to the change in the price of a given bond if the required yield changes by one basis point.
Price Wages and Sales Reports by Country: Overview - Price, wage and sales reports give insight into inflationary...
price-earnings ratio: A common measure of the degree of expensiveness of a stock. The P/E ratio is...
price-weighted index: A stock index, where each stock affects the index in proportion to its price per share.
price/earnings ratio: A common measure of the degree of expensiveness of a stock. The P/E ratio is...
priced out: A condition in which the market has already altered the price of a security as a result of a specific piece of news or information.
Primary Dealer: A title given by the Federal Reserve System to commercial banks or dealers who...
primary distribution: The original sale of a firm's securities in which the proceeds from the sale are received directly by the firm.
primary earnings per share: The earnings per share, including common stock, stock options, and some convertible debt.
primary exchange: The main exchange, where a given stock is listed. The stock may trade on other...
primary instrument: A financial instrument whose value is not derived from that of another instrument,...
primary listing: The main exchange, where a given stock is listed. The stock may trade on other...
primary market: The market for new securities issues, and purchased directly from the issuer.
primary offering: The original sale of a firm's securities, in which the proceeds from the sale...
prime: The interest rate that commercial banks charge their most reliable borrowers...
prime accounts: Any form of accounts received that satisfy the lender's criteria as specified...
prime broker: A broker who acts as a settlement agent, provides custody for assets, provides...
prime brokerage: The specialized brokerage services provided by brokers to specific clients who need non-standard services.
prime paper: Commercial paper with a very high credit rating.
prime rate: The interest rate that commercial banks charge their most reliable borrowers...
prime rate fund: The mutual fund that attempts to match the return of the prime rate, by investing in high quality corporate debt.
principal: The amount borrowed, or the part of the amount borrowed but unpaid. Also known as principal amount.
principal amount: The amount borrowed, or the part of the amount borrowed but unpaid. Also known as principal.
principal balance: The outstanding balance of principal on a mortgage, which does not include interest or other charges.
principal risk: The risk of losing the amount invested due to bankruptcy or default. There is...
principal shareholder: The shareholder who owns more than ten percent of a firm's outstanding shares.
principal-agent relationship: The arrangement that exists when one person acts on behalf of another (i.e....
principle: A rule or ethical standard.
prior lien bond: A bond with a higher claim than other bonds from the same issuer.
prior preferred stock: A preferred stock which has a higher claim than other preferred stock from the same issuer.
prior redemption privilege: A clause in certain loans, permitting the borrower to pay off the debt prior...
prioritization of debt: The preferred treatment of one debt over another.
private: Opposite of public.
private banking: The providing of banking services to very wealthy individuals and families....
private company: A firm whose shares are not traded on the open market. Opposite of public firm.
Private Consumption - Germany - Euro-zone: Represents household spending on all goods and services. Fluctuations in Private...
private corporation: See private firm.
private debt: Any form of debt owed by individuals and businesses within a given country.
private equity: A type of equity security of firms that are not listed on a public exchange.
private funds: Private sector funds available without government involvement or support.
Private Investment in Public Equity: Abbreviated as PIPE, which refers to a transaction in which accredited investors...
private letter ruling: A letter sent by the IRS in response to a request for clarification or interpretation of a tax law.
private limited partnership: A limited partnership with less than 35 limited partners, and thus able to avoid SEC registration.
Private Market Value: Abbreviated as PMV, refers to the value of a firm if each of its parts were...
Private Mortgage Insurance: Abbreviated as PMI, refers to mortgage insurance provided by nongovernment insurers...
Private New Capital Expenditures and Expected Expenditures - Australia: The value of actual and expected purchases of new capital. Capital purchases...
private placement: The sale of securities directly to institutional investors, such as banks, mutual...
private sector: The part of a nation's economy which is not controlled by the government.
private sector pass-through: Mortgage-backed securities issued by a non-governmental financial institution.
Private Securities Litigation Reform Act of 1995: Abbreviated as PSLRA, refers to the act of legislation that made significant...
privately held corporation: See private firm.
privatization: The repurchasing of all of a firm's outstanding stock by employees or a private...
privilege: A special right granted to somebody.
privilege dealer: A dealer of options.
privileged bond: A convertible bond that has attached warrants.
privity: Any kind of private or secret knowledge.
pro forma: A description of financial statements that have at least one hypothetical condition built into the data.
pro rata: Calculated in proportion to a given rate. In financial terms, this term is most...
probability distribution: A curve displaying all the values that the random variable can take and the likelihood that each will occur.
probate: The review or testing of a will before a court of law to ensure that the will is authentic.
proceeds: Any form of money received through a sale or loan.
procure: To acquire or obtain.
producer: The entity that manufactures a product. Also known as maker.
Producer and Import Prices - Switzerland: Tracks inflation in producer and import prices in Switzerland . The headline...
Producer Price Index: Producer Price Index - PPI - measures changes in the selling price producers...
Producer Price Index (Input) - UK: A monthly survey that measures change in input prices as incurred by UK manufacturers....
Producer Price Index (Output) - UK: A monthly survey that measures the price changes of goods produced by UK manufacturers....
Producer Price Index (PPI) - Australia: Measures changes in the selling prices received by producers. Because PPI analyzes...
Producer Price Index (PPI) - Euro-Zone: Measures changes in the selling prices of goods and services used by Euro-zone...
Producer Price Index (PPI) - United States: Measures changes in the selling prices producers charge for goods and services,...
Producer Prices - France - Euro-zone: Measures changes in producer prices. Producer prices, also known as "factory...
Producer Prices - Germany - Euro-zone: Measures the change in the prices paid by domestic producers. Producer prices,...
product: The final output of the manufacturing process, offered to the marketplace to satisfy a specific need or want.
product line: A set of related products sold by a single firm.
productive: Producing or tending to produce goods and services having exchange value..
productivity: Producing or tending to produce goods and services having exchange value.
productivity report: A release of economic data outlining the output each unit of labor is producing...
profession: An occupation, especially one that requires further education.
profile: A summary of a firm's products and operations.
profit: The positive gain resulting from an investment or business operation after subtracting for all expenses. Opposite of loss.
profit and loss statement: An official quarterly or annual financial document published by a public firm, showing earnings, expenses, and net profit.
profit center: A business unit or department that is treated as a distinct entity enabling...
profit margin: The post-taxes net profit divided by total sales revenue, for a given 12-month period, expressed as a percentage.
profit motive: The primary objective for which firms strive to achieve.
profit ratio: The post-taxes net profit divided by total sales revenue, for a given 12-month period, expressed as a percentage.
profit warning: An announcement made by a public firm following its earnings announcement indicating...
profit-sharing: An agreement in which an employer shares some of its profits with its employees....
profit-taking: The strategy utilized by investors of selling when prices, with the hope of securing gains.
profitability: Having the ability to earn a profit.
profiteer: An individual who aims for high profits, often at the expense of others.
program: The stated policy or course of action followed by an individual or institution regarding its financial matters.
program trading: A type of computer-driven and automatically-executed program to trade securities,...
progressive tax: A tax system in which those who earn higher incomes pay a higher percentage...
project: A set of related tasks which have a specific goal.
projected maturity date: The expected date on which the final payment of a collateralized mortgage obligation must be received.
projection: A quantitative estimate of future, economic, or financial performance.
promissory note: A document signed by a borrower promising to repay a loan under agreed-upon terms. Also known as note.
promotion: An activity (i.e. a sale or advertising campaign) that is designed to increase visibility or the sale of a product.
proof: Any form of evidence that substantiates a claim.
proof of concept: Any form of evidence that demonstrates that a business model or idea is feasible.
prop trading: A proprietary trader is one who is involved with transactions with a securities...
property: Something at the disposal of a person, a group of persons, or the community.
property assessment: The process of assigning a value on an asset for the purpose of taxation. Also refers to the tax itself. A
property damage coverage: A type of insurance policy that pays for damage caused to the property of others,...
property inventory: A written record of personal property owned, along with price paid and current value, and used for tax or insurance purposes.
property tax: A local tax levied on property owned, such as real estate or automobiles. Generally federal income tax-deductible.
proportional representation: A method of shareholder voting in which the members are not required to vote...
proportional tax: A system, where all levels of income are taxed at the same rate. Also known as flat tax.
proposal: A formal description of the creation or termination of a contract. A proposal...
proprietary trading: Any kind of transaction made by a securities firm that affects the firm's account, but not the accounts of its clients.
proprietor: A self-employed owner of an unincorporated business (also known as a proprietorship), or an owner of real estate.
proprietorship: A business structure in which an individual and his or her firm are considered a single entity for tax and liability purposes.
prorata: Having the quality of occurring on a proportional basis.
prorate: The quality of allocating proportionately.
prospect: The potential of a given client.
prospectus: A legal document providing securities or mutual fund shares for sale, required...
prosperity: Having the quality of financial well-being.
protectionism: The government's placing of duties or quotas on imports, in order to protect domestic industries from global competition.
protective put: A put option purchased for an underlying security, previously owned by the holder...
protective put buying: The purchasing of put options whose underlying security is already held in the same portfolio.
protest: A statement that expresses disagreement with a payment, and reserves the right to recover it later.
prototype plan: A type of retirement plan prepared by a bank, securities firm, or other financial institution that may be adopted by an employer.
provision: Any clause or stipulation in an agreement (i.e. acceleration, accidental death...
provision for income taxes: An earnings report item estimating current year tax liability.
provisional call feature: A feature in a convertible issue enabling the issuer to call the issue if the price of the stock reaches a certain price.
proximo: Occurring n the following month.
proxy: A written authorization given by a shareholder for someone else, generally the...
proxy contest: A strategy that a firm may take in the case of a hostile takeover. A proxy contest...
proxy fight: A strategy that a firm may take in the case of a hostile takeover. A proxy contest...
proxy statement: A document that the SEC requires a firm to send to its shareholders that provides...
proxy vote: A vote that is cast by one entity on behalf of another. In the context of securities,...
Prudent Expert Act: The revised version of the prudent man rule required by ERISA to guide managers of pension and profit sharing portfolios.
Prudent Investor Act: The primary rule for which professional money management, as stated by Judge...
Prudent Man Rule: The primary rule for which professional money management, as stated by Judge...
PSA: Acronym for Public Securities Association, which refers to a trade organization...
PSLRA: Acronym for Private Securities Litigation Reform Act of 1995, which refers to...
PTE: The ISO currency code for the Portuguese Escudo. Learn more about Portugal and the Portuguese Escudo at GoCurrency.com
public: Having shares available to retail investors in the open market.
public bond: A bond, issued by a U.S. government-sponsored agency, and allowing certain groups...
public book: A record kept by an exchange member of the limit orders that have not yet been...
public company: A firm that has issued securities through an offering, and are now traded on...
public domain: Anything that is openly available to everyone and not subject to copyright protection.
public employee: An employee of the state.
public equity: Equity capital invested in a public firm.
Public Finances - UK: The amount of money financed to the UK government. A higher value indicates...
public float: The portion of a firm's outstanding shares that is in the hands of public investors,...
public goods: An exception to the free-market system marked by two characteristics. First,...
public limited partnership: A limited partnership that is registered with the SEC and is offered to the general public through broker/dealers.
public offering: The making available of a new securities issue to the public through an underwriting. Also known as offering.
public offering price: Abbreviated as POP, refers to the price at which a new securities offering is made upon availability to the public.
public ownership: See public firm.
public purpose bond: A type of municipal bond which exempt from federal income taxes, provided the...
public record: Something recorded in a publicly accessible place.
public relations: Any kind of efforts to establish and maintain a firm's image with the public.
public sector: The part of the economy concerned with providing basic government services.
Public Sector Net Borrowing - UK: The amount of new debt held by the UK governments. In the long run, the public...
Public Securities Association: Abbreviated as PSA, refers to a trade organization of dealers, brokers, and bankers who underwrite and trade securities offerings.
public utility: An organization providing a basic service to the public, such as water, energy, transportation, or telecommunications.
public works project: A government project created for good of its citizens.
publicity: A spread of information that attracts attention to a firm, product, person, or event.
publicly held: A firm that has previously issued securities through an offering, and which...
publicly traded: A firm that has previously issued securities through an offering, and which...
publicly-traded fund: A fund with a fixed number of outstanding shares, and behaves more like stock...
Puerto Rico Dollar: The currency of Puerto Rico.See GoCurrency World Currencies Page & Currency Converter
punitive damages: Any form of compensation in excess of actual damages, used to punish the offender.
purchase: To obtain ownership of a security or other asset in exchange for money or value. Also known as buy.
purchase acquisition: A type of accounting method used in any merger not treated as a pooling of interests.
purchase agreement: A legal agreement detailing a sale of property, including price and terms.
purchase order: The written authorization for a supplier to ship products at a specified price,...
purchase outright: The payment of the full purchase price, in cash.
purchase-money mortgage: A home-financing technique in which a buyer borrows from the seller instead...
purchaser: An individual who acquires by the payment of money or its equivalent
purchasing power: The value of money, as measured by the quantity and quality of products and services it can buy. Also known as buying power.
purchasing power parity: The theory that, in the long run, identical products and services in different...
purchasing power risk: The potential risk of loss in the value of cash due to inflation.
pure competition: A market characterized by a large number of independent sellers of standardized products.
pure index fund: A portfolio that is managed as to perfectly match the performance of the overall market.
pure lease: An equipment lease, generally for a short term, in which the lessee does not...
pure monopoly: A market, where one firm has control over the entire market for a product, generally...
pure no-load fund: A mutual fund that does not require a sales or redemption charge or a 12b-1 fee.
pure play: A firm devoted to only one industry, or a firm whose stock price is highly correlated...
purpose loan: A loan backed by securities and used for purchasing other securities, in accordance with Federal Reserve Board margin requirements.
purvey: To furnish or provide.
purview: The range of control or expertise.
put: An option contract that gives the holder the right to sell a certain quantity...
put bond: The uncommon type of bond, allowing for the bondholder to redeem the bond at...
put option: An option contract that gives the holder the right to sell a certain quantity...
put provision: A relatively uncommon feature of a bond that allows the holder to redeem the...
put ratio backspread: A type of investment strategy, where an investor combines long and short puts to create a spread with little risk of loss.
put swaption: A swaption in which the buyer has the right to enter into a swap as a floating-rate payer.
put warrant: A security that provides the holder with the right to sell the underlying security at a specified price.
put/call ratio: The put volume divided by call volume for a specific period of time.
PVBP: Acronym for Price Value of a Basis Point, which refers to the change in the...
PVI: Acronym for Positive Volume Index. An index that tries to determine the actions...
PYG: The ISO currency code for the Paraguayan Guarani. Learn more about Paraguay and the Paraguayan Guarani at GoCurrency.com
pyramid: The idea that a portfolio should be built on a solid base of low-risk investments with a smaller amount of high-risk investments.
pyramid scheme: An illegal investment scheme, where investors are promised impossibly high returns...
pyramiding: The use of profits earned on open positions to purchase additional securities.

Forex, Trade, Trading, Glossary, Currency, Dictionary, Definition of forex, forex definition, FX Words Trading Glossary

forex market, forex forum, free forum, forex news, forex market center, forex news center, 24 hour FX trading, Bourse Online, Learn Forex. Forex articles, dictionary and resources, forex training videos. Forex Business Opportunity.Forex World Forum | Make Money With Currency Trading, forex strategyForex trading discussions that cater more to the beginner traders