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| P&S |
Purchase and sale statement. A statement provided by the broker showing change in the customer's net ledger balance after the offset of a previously established position(s). |
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| Par value |
Also called the maturity value or face value, the amount that the issuer agrees to pay at the maturity date.
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| Perfect hedge |
A hedge in which the profit and loss are equal. |
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| Performance evaluation |
The evaluation of a manager's performance which involves, first, determining whether the money manager added value by outperforming the established benchmark (performance measurement) and, second, determining how the money manager achieved the calculated return (performance attribution analysis).
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| Pit |
A specific area of the trading floor that is designed for the trading of an individual futures or options contract. |
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| Point |
Minimum price fluctuation. |
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| Profit (Gain) |
positive amount of money gained for closing the position. |
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| Portfolio |
A collection of investments. |
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| Portfolio turnover rate |
For an investment company, an annualized rate found by dividing the lesser of purchases and sales by the average of portfolio assets.
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| Premium |
The price of an options contract; also, in futures trading, the amount the futures price exceeds the price of the spot commodity. Related: Inverted market premium payback period Also called break-even time, the time it takes to recover the premium per share of a convertible security.
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| Prepayment speed |
Also called speed, the estimated rate at which mortgagers pay off their loans ahead of schedule, critical in assessing the value of mortgage pass- through securities.
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| Pre-trade benchmarks |
Prices occurring before or at the decision to trade. |
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| Price discovery process |
The process of determining the prices of the assets in the marketplace through the interactions of buyers and sellers. |
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