Preemptive Right Right of common stockholder to claim any distribution by company that can be attributed some value. … [Read more...]
Preferred Equity Redemption Stock (PERC)
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Preferred Equity Redemption Stock (PERC) Shares that are issued as preferred stock that automatically turn into equity on a specific date. The investor can only avail of a restricted value of such equity. … [Read more...]
Preference Stock
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Preference Stock Stock that gives the holder a right to company payments after preferred stock holders are paid. Rates above common stock in terms of priority. … [Read more...]
Preferred Habitat Theory
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Preferred Habitat Theory Theory that term of a security is based on predictions of future interest rate movement and risk premium. This theory rejects the assumption that risk premium increases with maturity terms. On the contrary, when demand and supply for a specific maturity … [Read more...]
Preferred Shares
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Preferred Shares Also refer: preferred stock. Shares that give the holder a right to company’s earnings before common shareholders are paid. A fixed dividend is normally paid to preferred shareholders. … [Read more...]
Preferred Stock
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Preferred Stock Stock that gives the holder a preferential treatment over common stockholders in terms of payment of earnings. During liquidation, preferred stock gives the holders priority. Typically, preferred stock pays a fixed dividend that is disbursed before the common stock … [Read more...]
Preferred Stock Agreement
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Preferred Stock Agreement Binding agreement drawn up for preferred stock. … [Read more...]
Preliminary Prospectus
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Preliminary Prospectus First cut prospectus version. … [Read more...]
Premium
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Premium -Purchase price of options contract -The amount by which a futures price is higher than spot commodity price. - Amount by which the purchase price of bond exceeds its par value. Also refer: inverted market premium payback period. … [Read more...]
Premium Adjustable Convertible Security (PEACS)
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Premium Adjustable Convertible Security (PEACS) Bond with a predetermined coupon yield with an option to convert to common stock at a given price. Also called hybrid security. … [Read more...]
Premium Bond
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Premium Bond Bond whose sale price is higher than par value quoted on it. … [Read more...]
Prepackaged Bankruptcy
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Prepackaged Bankruptcy Situation where creditors and debtor plan out a reorganization or outline a plan before bankruptcy is filed. Such a plan is filed along with the petition for bankruptcy. … [Read more...]
Prepayment Speed
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Prepayment Speed Rate estimated, at which mortgage loans are prepaid or paid before due date by mortgagors. Helps assess the pass through security value that is based on the underlying mortgage. … [Read more...]
Prepayments
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Prepayments Borrower’s excess payments over and above mortgage principal payment dues. … [Read more...]
Prerefunded Bond
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Prerefunded Bond Refer: Refunded bond. Bond whose repayment at maturity is protected by investments in safe instruments like Treasury securities. … [Read more...]
Present Value
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Present Value In current date, the cash amount that will equal in value the stream of payments that are receivable in the future. … [Read more...]
Present Value Factor
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Present Value Factor Concept used to represent the value of an amount receivable in future in terms of the value today. … [Read more...]
Present Value of Growth Opportunities
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Present Value of Growth Opportunities Present value of cash flows receivable in future less cost for future investments the firm may undertake. … [Read more...]
Presold Issue
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Presold Issue Bond that is sold out in advance before coupon is announced. … [Read more...]
Pre-Trade Benchmarks
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Pre-Trade Benchmarks Security price prior to a trade or before trade is complete. … [Read more...]
