Price-to-sales ratioA price-to-sales ratio, or a stock's market price per share divided by the revenue generated by sales of the company's products and services per share…
Primary marketIf you buy stocks or bonds when they are initially offered for sale, and the money you spend goes to the issuer, you are buying in the primary market.
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.
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 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-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.
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.
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…
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…
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…
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.
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…
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…
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…
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…