Glossary

This glossary is available to download as a PDF

1. A
2. B
3. C
4. D
5. E
6. F
7. G
8. H
9. I
10. J
11. K
12. L
13. M
14. N
15. O
16. P
17. Q
18. R
19. S
20. T
21. U
22. V
23. W
24. X
25. Y
26. Z

P

Par

Where the price is the same at purchase and redemption.

P/E Ratio Price /Earnings Ratio.

A measure of investor confidence, normally the higher the figure the higher the confidence. Current share price divided by earnings per share.

Point/pip

The last decimal place of the quotation.

Portfolio

A collection of securities owned by an investor.

POTAM

Panel on Takeovers and Mergers. UK regulatory body.

Preference Shares

Normally fixed income shares, where holders have the right to receive dividends before ordinary shareholders. In the event of liquidation preference shareholders rank above ordinary shareholders.

Premium

The margin by which the purchase price is more expensive than the redemption rate.

Premium-options

The cost of the option contract. It is made up of two components, intrinsic value and time value.

Price Transparency

Where a transaction is executed on the floor of an exchange, and every participant has equal price.

Primary Market

The function of a stock exchange in bringing securities to the market for the first time.