Plus -Bid or offer price in 64ths is quoted with help of plus. Typically government bond prices are quoted in 32nds by dealers. - In mutual fund markets, pus denotes the difference between market price and NAV of the fund’s units. … [Read more...]
Point
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Point The minimum unit of change possible in price. One hundredth of one percent. Also refer: tick, minimum price fluctuation. … [Read more...]
Point and Figure Chart
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Point and Figure Chart Technical analysis tool showing only the price changes in security or derivative. Time is not taken into consideration. Accounts for only whole integer fluctuations in price levels. … [Read more...]
Poison Pill
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Poison Pill Defense mechanism for takeover allowing the shareholders of the firm-to- be- acquired the right to purchase more shares of the same firm or of the potential acquirer at a significant discount to market price prevailing then. … [Read more...]
Poison Put
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Poison Put Right of bondholders to ask for immediate repayment of the debt security when hostile merger is imminent. … [Read more...]
Poisson Distribution
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Poisson Distribution Discrete function showing the rate of occurrence of particular events when the average probability of one single event is a known factor. … [Read more...]
Policy Asset Allocation
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Policy Asset Allocation Asset allocation technique wherein investor assesses ‘normal’ long-term combination of assets that present controlled risk and good returns. … [Read more...]
Political Risk
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Political Risk Risk in investment that arises from political changes in a foreign country. Includes altered policies, tax policy changes, foreign exchange restrictions and others. Some such factors may impact investor’s potential returns from portfolio. … [Read more...]
Pool Factor
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Pool Factor A decimal calculated by dividing outstanding principal balance in a bond issue by original principal balance. Pool factors may be determined from the monthly issues of the Bond Buyer newspaper. … [Read more...]
Pooling of Interests
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Pooling of Interests Method of accounting used for reporting equity based acquisitions. The total assets of the new entity that is created after the merger are consolidated using the book value as basis rather than the market value, which is used in the purchase method. Financial … [Read more...]
Portfolio
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Portfolio A group of investments made in physical and financial assets. … [Read more...]
Portfolio Insurance
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Portfolio Insurance Technique by which portfolio is protected from vagaries of market by creating and using an artificial put option. This ensures that the portfolio value is insulated from declining beyond a specific limit. … [Read more...]
Portfolio Internal Rate of Return
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Portfolio Internal Rate of Return Computation of rate of return by initially calculating cash flow for bonds, then computing the rate of interest that equates present value of cash flow to the portfolio’s market value. … [Read more...]
Portfolio Margin
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Portfolio Margin Margin requirements to be maintained with derivatives accounts where future and options are traded with. … [Read more...]
Portfolio Opportunity Set
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Portfolio Opportunity Set Based on a specific asset group, the number of portfolios that can be created with different asset combinations to give different returns and risk levels. … [Read more...]
Portfolio Management
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Portfolio Management Refer: Investment management. Professional management of investment portfolio encompassing creating and managing combinations of various securities and assets with the goal of achieving specific returns. … [Read more...]
Portfolio Manager
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Portfolio Manager Refer: Investment manager. Individual responsible for making decisions pertaining to managing various assets and securities in a portfolio to achieve investment goals. … [Read more...]
Portfolio Separation Theorem
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Portfolio Separation Theorem Refer: Fisher's separation theorem. Theory stating that investors may have an attitude towards risk that is distinct and different from the choices they make in selecting risky assets for their portfolio. … [Read more...]
Portfolio Turnover Rate
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Portfolio Turnover Rate Annualized rate of return measuring the magnitude of change in the assets making up a portfolio. Calculated by viewing trading volume as compared to the total portfolio. … [Read more...]
Position
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Position Buy or sell transaction that commits a trader to a specific asset with no opposing or balancing transaction to offset it. Buyers of assets, commodities have a long position while a short position is created by a sale. … [Read more...]
