|
|
|
Perpectual Annuity:
A Contracutal agreement with a bank or an insurance company to which a person pays regular amounts over a period of time, or once in a lumpsum, to receive periodic sums in perpetuity. For example, monthly payments of a fixed instalment for a period of seven years will qualify for payment of the sameamount every month for ever afterwards, whereas payment of the same instalment every month for eleven years will assure payment of double the instalment amount every month in perpectuity. Perpectual annuity schemes offered by different insurance companies andbanks are variations on the deferred annuity scheme.
Perpendicular Spread:
Options strategy in which there are several options with the same expiry dates but different exercise(strike) prices. The strategy can be adopted by both bulls and bears. See OPTIONS TRADING.
Petrodollar:
US dollars paid to oil-producing countries and by foreign banks. In the 1970s Middle Eastern oil producers built up huge reserves of petrodollars and lent them freely to oil-importing countries all over the world, holding them in a DEBT TRAP.
Pig:
Stock Market operators who get wiped out by speculators.
Pink Form:
Share application form in pink to denote its perferential status; may be issued to employees, existing shareholders, or shareholdersin group companies.
Placing:
The sale of shares in bulk directly to select individuals or institutions of the company's choice. Besides being a cheaper method of selling, it ensures that these shareholders are friendly to the company.
Plant:
Strictly speaking, plant describes the fixed assets of a company: land, buildings, machinery, natural resources, furniture and fixtures, and all that is permanently employed. Sometimes, however, plant is restrictively used to mean only buildings or land and buildings.
Plastic Money:
Sometimes shortened to plastic; credit card.
Players:
Intermidiaries and institutional investors active in the stock market: securities firms, brokers, dealers, commercial banks, merchantbanks, unit trust, and other mutual funds
Plc:
Short for public limited company; in Britain it is obligatory to write plcafter the name of a limited company.
Plough Back:
To reinvest a company's profits in the business rather than distribute them as dividends. It is usually the fast-growing companies that do so. As a noun, one word, it is profit for the year not distributed among the shareholders but retained in the business, for growth and development.
Ploughed-Back Profits:
See RETAINED PROFITS.
Point:
A change of Re.1 in the price of a share when one speaks of a share rising or falling by so many points. In stock market indices, however, a point is one unit of the average, which is a composite of weighted(on market capitalization) rupee values. When the BSE index rises by 10 points it does not rise by Rs 10, but by 10 average points.
Point and Figure Chart:
A TECHNICAL ANALYSIS graph which records the ups and downs of individual of individual share prices, disregarding the element of time. Every time a share price moves up an x is put on the graph above the previous point. Every time the share price moves down an 0 is placed one square down in the next column. This chart helps one study the trend of movement-up or down- of a share price for a period of time.(Page No.145 GRaph).
Point and Figure Technique:
See DOW RULE
Poison Pill:
Defensive strategy adopted bya takeover target. The target company makes the takeover less attractive by such means as issuing fresh preference shares with the provison that in the event of a takeover the preference shareholders can redeem their shares at a high premium, making the cost of takeover quite unattractive.
Poison Put:
A clause in a bond allowing the bondholder to demand repayment in the event of a hostile takeover. See SHARK REPELLENT.
Ponzi Scheme:
Under this scheme banks and financial institutions, which are in financial institutions, which are in financial difficulty, pay interest on old deposits by taking new deposits- a tactic adopted by some high-flying investment companies in our country, which finally collapsed.
Pool:
A mafia of investors or speculators who get together and use their combined strength to manipulate share prices or to obtain control of a company.
Porcupine Provisions:
See SHARK REPELLENT.
Portfolio:
Combined holding of many kinds of financial securities-shares, debentures, government bonds, Unit Trust certificates, and other financial assets. Making a portfolio is putting one's eggs in different baskets with varying elements of risk and return. Reducing risk by diversification andmaximization of gains are the primary objects of making a portfolio.
Portfolio Beta Score:
The relative volatility of an individual portfolio of shares taken as a whole. It is measured by the BETA COEFFICIENT of the shares making up the portfolio. A beta of 1 makes the portfolio as volatile as the market; a beta of 1= makes it more volatile, while 1- makes it less so. Conservative portfolio managers will aim at a 1-beta, while those whorecommend more risk, and consequentlythe prospect of more gain, will make up a portfolio of a beta of more than 1.
Portfolio Manager:
A professional who manages other people's or institution's investment portfolios with the objectives of profitability, growth, and risk minimization. He is expected to manage the investor's assets prudently, and chooses particular investment avenues, such as cash equivalents, real estate, bonds, shares, etc., appropriate for particular times, aiming at maximization of profit.
Portfolio Theory:
See MODERN PORTFOLIO THEORY.
Position:
An investor's stake in a particular share or market; the number of shares owned (long position) or the number of shares owed(short position). As a verb the term 'to take a position' means 'to acquire a net inventory, long or short, in a particualr share', i.e., if the investor has bought 1000shares, he does not possess, he has taken a short position.
Position Building:
Buying shares over a period to build up a LONG POSITION, or selling shares to build up a SHORT POSITION. Institutional investors who want to build a long position usually do it small lots, over a period of time, to avoid pushing up the prices too fast.
Positive Carry:
If the interest paid on borrowed funds is less than the income from shares bought with them, there is a positive carry. For example, if a person borrows Rs 50,000 at 16.5% interest to buy 5000 leasing shares, which yield a dividend of 18% there is a positive carry.
Positive Yield Curve:
The curve which shows that the longer the term of a debt-security the higher the interest rates. This curve is more common than the negative yield curve in which short-term debt instruments command higher rates of interest.
 |
|
|
|
|
|
|
