Purchasing Power Parity Theory that in perfect markets, exchange rate of two currencies equalizes the purchasing power of both. … [Read more...]
Purchasing-Power Risk
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Purchasing-Power Risk Refer: inflation risk. Risk that sudden changes in prices of consumables adversely affect the investor’s actual return from investment. … [Read more...]
Pure-Discount Bond
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Pure-Discount Bond Single payment bond or zero coupon bond. Bond that yields a single principal and interest payment. … [Read more...]
Pure Expectations Theory
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Pure Expectations Theory Theory expounding the concept that forward rates denote rates that will prevail in future. Or the term or maturity of the security is based on future expectations of interest rates. Forward expectation rates for currency equal spot rate on that date. … [Read more...]
Pure Index Fund
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Pure Index Fund Portfolio managed in such a manner that it duplicates the market portfolio perfectly. … [Read more...]
Pure Yield Pickup Swap
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Pure Yield Pickup Swap Swap involving exchange of one bond into a higher yield variety. … [Read more...]
Put
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Put Opposite of call option. Allows holder the right to sell the security underlying the put. … [Read more...]
Put Bond
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Put Bond Bonds that can be exchanged by holders for par value at a specific date or extended for a specified number of years determined in advance. … [Read more...]
Put Option
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Put Option Option that gives investor or holder the right to sell at a specific price a specific number of shares within a time frame given in the options contract. For example, an investor with the right to make a sale of company shares at a predetermined price to protect his … [Read more...]
Put Price
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Put Price Sale price of an asset when holder of put option exercises this right. Also termed as exercise price or strike price. … [Read more...]
Put Provision
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Put Provision Provision that affords the bond holder of a floating rate debt security the right to ask for par value redemption at maturity. … [Read more...]
Put Ratio Backspread
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Put Ratio Backspread Combination of long and short positions in an investment to cover risk while increasing possibility of profit. … [Read more...]
Put Swaption
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Put Swaption Tool that gives an option to a buyer to undertake a swap with a floating rate. The new swap’s writer is now the receiver of the floating rate and the payer of the fixed rate. … [Read more...]
Put-Call Parity Relationship
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Put-Call Parity Relationship Link between the call price and put price on the same underlying security with similar expiries. This eliminates any opportunity of arbitrage. Purchase of a call option and investment in present value exercise price will give same benefits as keeping … [Read more...]
Pyramid Scheme
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Pyramid Scheme A type of fraud involving promise of great returns to lure investors into some investment. The actual payments of new investors are paid out to existing investors, creating a sense of profits. … [Read more...]
Q
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Q Symbol used with NASDAQ stocks to signify bankruptcy proceedings in motion. Random Finance Terms for the Letter Q Q Q Ratio or Tobin's Q Ratio Quadratic Programming Quality Option Quality of Earnings Quality Spread Quanto Swap Quantos Quarterly Revenue … [Read more...]
Q Ratio or Tobin’s Q Ratio
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Q Ratio or Tobin's Q Ratio The ratio derived by dividing the market value of a business by asset replacement value. Random Finance Terms for the Letter Q Q Q Ratio or Tobin's Q Ratio Quadratic Programming Quality Option Quality of Earnings Quality Spread Quanto … [Read more...]
Quadratic Programming
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Quadratic Programming Optimization technique where linear equations are replaced by quadratic functions. Random Finance Terms for the Letter Q Q Q Ratio or Tobin's Q Ratio Quadratic Programming Quality Option Quality of Earnings Quality Spread Quanto … [Read more...]
Quality Option
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Quality Option Option allowing seller to choose deliverables in Treasury note and bond futures contracts. Refer: cheapest to deliver, swap option. Random Finance Terms for the Letter Q Q Q Ratio or Tobin's Q Ratio Quadratic Programming Quality Option Quality of … [Read more...]
