Investment terms starting with P

6 terms

1. Par Value The stated or face value of a stock or bond. It has little significance for common stocks, however, for bonds it specifies the payment amount at maturity.
2. Pooling Combining of assets of different entities, i.e., two or more counties, for efficient investment purposes while maintaining separate accounting trails.
3. Present value The current value of a future cash flow or series of cash flows discounted at an appropriate interest rate or rates.
4. Present value (PV) The current value of a future cash flow or series of cash flows discounted at an appropriate interest rate or rates.
5. Principal Face value of an obligation, such as a bond or a loan, that must be repaid at maturity.
6. Prudent Person Rule The standard adopted by some states to guide those fiduciaries with responsibility for investing money of others.