|
p/e ratio
|
|
See price/earnings ratio
.
|
|
passive market-making
|
|
A process that allows a Market Maker firm to be both underwriter and buyer of a company's securities in a secondary public offering. A underwriting Market Maker may bid for the security during the issue's cooling-off period if its bid is no higher than a competing, non-underwriting, Market Maker's. Before the Securities and Exchange Commission adopted passive market-making in 1993, Market Makers were required to withdraw from solicitation and market-making activities during the cooling-off period. (See Market Maker
, secondary offering
, underwriter
, cooling-off period
.)
|
|
penalty bid
|
|
A syndicate manager's or underwriter's offer to buy a security at specific price during a new issue distribution. The bid acts to stabilize the price of the stock, to facilitate distribution. The bid, also called "pegging," is permitted under Securities and Exchange Commission Rule 10b-7; otherwise the practice is prohibited. (See bid
, new issue
, syndicate manager
, underwriter
.)
|
|
pink sheets
|
|
Daily printed listings containing quotations for thousands of over-the-counter stocks that are not listed on any of the major stock markets. These quotations are entered by dealers acting as Market Makers in the individual securities. The pink sheets are printed by the National Quotation Bureau.
|
|
portfolio
|
|
The combined holding of more than one stock, bond, commodity, real estate investment, or other asset by an individual or institutional investor.
|
|
PORTAL
|
|
The Nasdaq's trading system for secondary trading of unregistered securities in transactions exempt from the registration and a prospectus delivery requirement of the Securities Act of 1933 pursuant to SEC Rule 144A.
|
|
pre-syndicate bid
|
|
A bid entered before the effective date of a secondary offering, made to stabilize the price during distribution. The bid is permitted under Securities and Exchange Commission Rule 10b-7; otherwise the practice is prohibited. (See penalty bid
, secondary offering
.)
|
|
preferred stock
|
|
A security that usually pays a fixed dividend and that gives the holder a claim on corporate earnings and assets that is superior to that of holders of common stock. (See common stock
.)
|
|
previous day's close
|
|
The previous trading day's last reported trade.
|
|
price/earnings ratio
|
|
The price of a share of a stock divided by earnings per share, usually calculated using the latest year's earnings. The p/e ratio is also called the multiple.
|
|
price-to-earnings ratio
|
|
See price/earnings ratio
.
|
|
principal orders
|
|
Activity by a broker-dealer when buying or selling for its own account and risk. Also called principal trades.
|
|
principal trades
|
|
See principal orders
.
|
|
PROCTOR
|
|
See Professional Certification Testing Organization.
|
|
Professional Certification Testing Organization (PROCTOR)
|
|
FINRA's system for comprehensive testing, appointment administration, and grading. The PROCTOR organization includes a network of test delivery centers located throughout the nation.
|
|
prompt receipt and delivery of securities
|
|
The customer's obligation to deliver securities that have been sold by the broker-dealer in a specified period of time. If the customer has sold short, he must deliver the securities, or make arrangements to borrow the securities from the broker-dealer for delivery by the settlement date. (See settlement
, settlement date
, short sale
.)
|
|
prospectus
|
|
A formal written offer to sell securities that sets forth the plan for a proposed business enterprise, or the facts concerning an existing one that an investor needs to make an informed decision.
|
|
proxy
|
|
Written power of attorney given by a shareholder of a corporation, authorizing someone to vote on his or her behalf at corporate meetings.
|
|
proxy statement
|
|
Material information required by the Securities and Exchange Commission to be given to a corporations stockholders as a prerequisite to solicitation of votes. It is required for any issuer subject to the provisions of the Securities Exchange Act of 1934.
|
|
public float
|
|
The portion of a company's outstanding shares that is in the hands of public investors; shares not held by company officers, directors, or investors who hold a controlling interest in the company.
|
|
put
|
|
A bondholder's right to redeem a bond before maturity; a contract that grants the right to sell at a specified price a specified number of shares by a certain date. (See call
.)
|
