Primary or Principal Residencethe property in which the homeowner will live most of the time, as distinct from a second home or an investor property that will be rented.
Primary producerThe industry that is the main producer of a particular good or service. Typically, this industry shares the same name as the good or service.
Primary productThe principal good or service produced by an industry, which is used to classify establishments in the Standard Industrial Classification System (SIC) or…
Primary residence/second homeA property is classified as a primary residence if it is the place where the owner lives most of the time.
Prime LoansLoans typically extended to the most credit-worthy borrowers that generally carry a lower interest rate compared to other types of loans.
Prime MortgagesA classification of mortgages that are considered to be of high quality.
Prime RateThe prime rate is a benchmark for interest rates on business and consumer loans.
PrincipalFace value of an obligation, such as a bond or a loan, that must be repaid at maturity.
Principal and interest payment (P & I)A periodic payment, usually paid monthly, that includes the interest charges for the period plus an amount applied to amortization of the principal…
Principal BalanceThe outstanding balance on a loan, excluding interest and fees.
Private BankingOffshore banking services are most commonly handled by the private banking departments of commercial banks or by private banks that cater solely to…
Private equityPrivate equity is an umbrella term for large amounts of money raised directly from accredited individuals and institutions and pooled in a fund that…
Private letter rulingA private letter ruling explains a position the Internal Revenue Service (IRS) has taken on a specific issue or action that affects the amount of income…
Private Mortgage InsuranceInsurance for conventional mortgage loans that protects the lender from loss in the event of default by the borrower. See Mortgage Insurance
Private Mortgage Insurance (PMI)Insurance offered by a private insurance company that protects the bank against loss on a defaulted mortgage up to the limit of the policy (usually 20 to…
Private placementIf securities are sold directly to an institutional investor, such as a corporation or bank, the transaction is called a private placement.
Private remittancesIncludes institutional and personal remittances between U.S. private residents and foreign residents.
Private-Label Mortgagesloans that are not owned or guaranteed by Fannie Mae, Freddie Mac, Ginnie Mae, or another Federal agency.
PrivatizationPrivatization is the conversion of a government-run enterprise to one that is privately owned and operated.
Pro rata cancellationRevocation of a policy by an insurance company that returns to the policyholder the unearned premium.
ProbateProbate is the process of authenticating, or verifying, your will so that your executor can carry out the wishes you expressed in the document for…
Probate estateYour probate estate includes all of the assets that will pass to your heirs through your will.
Probation Surcharge (Premium)A flat charge that the policyholder must pay on each new or renewal policy issued covering property in a community that the NFIP has placed on probation…
Procedural failureProcedural failure means a minor procedural discrepancy, mistake, or omission.
processora person who acts as a liason between your Loan Officer and the Underwriter to help facilitate the flow of paperwork which takes you from loan application…
ProducerAn authorized representative of an insurance company who sells and services insurance contracts.
Producer (agent)A licensed individual or organization authorized to sell, solicit, negotiate and service insurance policies for an insurance company.
Producers' pricesCommodity transactions in the input-output (I-O) accounts are valued in producers' prices in order to show the relationship between the production of…
ProfitProfit, which is also called net income or earnings, is the money a business has left after it pays its operating expenses, taxes, and other current bills.
Profit marginA company's profit margin is derived by dividing its net earnings, after taxes, by its gross earnings minus certain expenses.
Profit sharingA profit-sharing plan is a type of defined contribution retirement plan that employers may establish for their workers.
Profit takingProfit taking is the sale of securities after a rapid price increase to cash in on gains.
Program tradingProgram trading is the purchase or sale of a basket, or group, of 15 or more stocks with the combined value of $1 million or more.
Progressive taxIn a progressive, or graduated, income tax system, taxpayers with higher incomes are taxed at higher rates that those with lower incomes.
Prohibited SourceIn the Standards of Conduct, a prohibited source for gifts is any person (including an individual or entity) who: Is seeking official action by the…
Promissory NoteA written promise to repay a specified amount over a specified period of time.
PromoterAny person who, directly or indirectly, organizes or assists in the organization of a tax shelter or who participates in the sale of any interests in a…
Proof of lossDocuments that you give the insurer to support your request for payment of losses.
propertyFor this survey, property means real estate; that is, land and anything permanently affixed to the land, such as buildings and those things attached to…
Property (Fixture and Non-Fixture)In a real estate contract, the property is the land within the legally described boundaries and all permanent structures and fixtures.
Property Damage LiabilityPays for damage to another person’s car or property such as fences, buildings, utility poles, signs, and trees.
Property insuranceA form of insurance that protects real property against certain risks, such as from fires or storms; often called fire and hazard insurance.
Property taxThe amount which the state and/or locality assesses as a tax on a piece of property.
Property Tax DeductionThe U.S. tax code allows homeowners to deduct the amount they have paid in property taxes from there total income.
property taxesTaxes on property, especially real estate, but also can be on boats, automobiles (often paid along with license fees), recreational vehicles, and business…
Property TypeIndicates whether the loan or application was for a one-to-four-family dwelling (other than manufactured housing), manufactured housing, or multifamily…
proportional taxA tax that takes the same percentage of income from all income groups.
Proprietary fundProprietary mutual funds are offered for sale by the financial institution - such as a bank, investment company, or brokerage firm - that sponsors the…
Proprietors' incomeCurrent-production income of sole proprietorships, partnerships, and tax-exempt cooperatives.
prorateTo proportionally divide amounts owed by the buyer and the seller at closing.
ProspectusA legal document describing securities being offered for sale to the public. It must be prepared in accordance with provincial securities commissions…
Protected balancesProtected balances are amounts owing on the account that under law are not subject to an increase in interest rates or fees.
protective tariffA tax levied on imported goods with the purpose of reducing domestic consumption of foreign-produced goods.
ProxyIf you own common stock in a US corporation, you have the right to vote on certain company policies and elect the board of directors by casting a proxy…
Proxy statementThe Securities and Exchange Commission (SEC) requires that all publicly traded companies provide a proxy statement to its shareholders prior to the annual…
Prudent man ruleThe prudent man rule is the basic standard a fiduciary, who is responsible for other people's money, must meet.
Prudent Person RuleThe standard adopted by some states to guide those fiduciaries with responsibility for investing money of others.
Public access filePublic access file means documentation that is available for public examination at the employer's principal place of business in the U.S.
Public AdjusterA person you can hire to help settle a claim with an insurance company. A public adjuster may be hired to handle a complex or difficult loss negotiation.
Public companyThe stock of a public company is owned and traded by individual and institutional investors.
public goods and servicesBenefits that cannot be withheld from those who don't pay for them, and benefits that may be "consumed" by one person without reducing the amount of the…
Public insurance adjusterAn individual employed by a policyholder to negotiate a claim with the insurance company in exchange for a percentage of the claim settlement.
Public Record InformationCourt records of events that are a matter of public interest such as credit, bankruptcy, foreclosure and tax liens.
Public ThoroughfareAny publicly accessible right of way including, but not limited to a street, sidewalk, public park, and path.
Pump and dumpIn a pump and dump scheme, a scam artist manipulates the stock market by buying shares of a low-cost stock and then artificially inflating the price by…
Punch ListA list of items that have not been completed at the time of the final walk through of a newly constructed home.
Purchase agreementSame or similar to "contract to purchase." See also "contract to purchase" under "mortgage."
Purchase and Sale AgreementA document that details the price and conditions for a transaction. In connection with the sale of a residential property, the agreement typically would…
Purchase APRThe APR you will pay for purchases if you carry a balance on your credit card. For many cards, you only have to pay interest on purchases if you carry…
Purchase OfferA detailed, written document that makes an offer to purchase a property, and that may be amended several times in the process of negotiations.
Purchase priceThe amount of money paid for the property, including down payment and mortgage, but excluding closing costs and other fees.
PurchasesA purchase is the use of your card to buy or lease products or services. The purchase of cash or cash equivalents, like casino chips or lottery tickets…
Put optionBuying a put option gives you the right to sell the specific financial instrument underlying the option at a specific price, called the exercise or strike…
Put-call ratioSince investors buy put options when they expect the market to fall, and call options when they expect the market to rise, the relationship of puts to…