Paid-in Capital 

Capital received from investors in exchange for stock, but not stock from capital generated from earnings or donated. This account includes capital stock and contributions of stockholders credited to accounts other than capital stock. It would also include surplus resulting from recapitalization.
Par Value The principle amount that will be paid at a debt instrument's maturity.
Paying Agent The place or company where the principal and interest are payable.
Per Annum  Yearly.
Perfected First Lien A first attachment on an asset that is duly recorded with the relevant government body so that the lender will be able to act on it should the borrower default.

Physical Delivery 

The actual delivery of a stock certificate.

Pledge the commitment of securities to serve as collateral for the payment of a debt, and subject to forfeiture on failure to pay.


The group of investments and cash held by an individual.

Portfolio Diversification Investing in different asset classes and in securities of many issuers in an attempt to reduce overall investment risk and to avoid damaging a portfolio's performance by the poor performance of a single security, industry, (or country).


A market commitment to buy or sell a security. A buyer of a financial instrument is said to have a long position and, conversely, a seller of financial instrument is said to have a short position.

Power of Attorney A written authorization allowing a person to perform certain acts on behalf of another, such as moving of assets between accounts or trading for a person's benefit.

Preferred Stock 

A corporation generally issues two types of shares: Common stock and preferred stock.
Common stock is issues first and represents the “basic” ownership in a corporation. Owners of common stock share directly in the success or failure of the business.
A corporation only issues preferred stock after common stock has been issued. Dividends are distributed to preferred stockholders before being distributed to common stockholders, and in case the company is forced to liquidate its assets preferred stockholders are entitled to receive the money they have invested before common stockholders receive theirs.
Preferred shares can be Participating or Non-Participating. Participating preferred shareholders receive a dividend payment proportional to the company's profit, while non-participating preferred shareholders get a fixed dividend payment, usually a percentage of the par value. Preferred shares can be either Cumulative or Non-Cumulative, depending on whether the dividend payment due to shareholders accumulates since the issue date.
Preferred shares can also feature embedded options. For instance, some preferred shares are Callable, if the company has the right to repurchase the issue at a specific price, while others are Convertible, they grant the holder the right to convert the preferred shares into common shares of the company.
In exchange for these benefits, preferred stockholders, contrary to common stockholders, are not entitled to vote or have limited voting rights.
Companies can also issue several classes of stock, often labeled A, B, C and so on. The different classes have different dividend payments and different restrictions on ownership.

Premium Bond

A bond with a selling price that is above its face (par) value.

Price/Book Ratio

Calculated by dividing a stock's price by its book value per share. Used to assess whether a stock is overvalued or undervalued.

Price Limit Order

An order that specifies the price at which the trade can be executed.

Price to Earnings Ratio (P/E Ratio) 

Calculated by dividing the current price of a stock by the reported actual or forecasted earnings per share of the issuing firm.

Primary Market 

The market in which financial instruments are issued for the first time. After issuing on the primary market, the stock is then sold to the public in the secondary market.

Primary Offering Direct/Sale of a firm's newly issued shares by the firm to investors.

Prime Rate

The interest rate banks charge their most creditworthy clients. Most banks charge a few points above the prime rate on mortgages and other personal loans.


The original amount or face value of a bond or certificate of deposit.

Private Placement The sale of a bond or other security directly to a limited number of investors.


The act of a government transferring state-owned or state-run companies to the private sector, usually by selling them.


A document detailing a new offer for public securities. The prospectus provides financial background information of the issuing company, how the proceeds from the sale of securities will be used, and other information that aids a potential investor in deciding whether or not to participate in the new issue.


Written authorization by a shareholder to allow someone else to represent him and his vote at a corporation's annual shareholders' meeting. 

Public Shareholding Company

A company whose shares may be purchased by the public and whose share capital is not less than a statutory minimum.

Put Option

An option granting the right to sell the underlying futures contract. Opposite of a call.