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P & L - Slang term for a corporation’s Statement of Profit or Loss.
Pacific Stock Exchange - Regional stock exchange where a limited number of securities are bought and sold in the "third market".
Paid-In Capital - Value of all monies received in excess of par value by a corporation from the sale of its common stock or other securities; distinguished from capital generated through earnings.
Painting The Tape - Illegal act of manipulation where investors conspire to execute trades among themselves or with collaborators for the purpose of creating an illusion of spontaneous trading activity; often performed to lure other investors into a stock that appears to have potential for appreciation.
Paper - Slang term referring to any quantity of a security; likely derived from stock certificates which are, of course, printed on paper.
Par - Nominal or face value of a security. Although par value once represented a company's original investment behind each share of stock, today it is usually an assigned amount (typically one-tenth of a cent per share or $0.001) used to compute the dollar value of common shares on the balance sheet. The use of par is more relevant in bonds and preferred stock, as the interest paid on a bond and the dividends paid on preferred shares are normally based on a percentage of par.
Partial Delivery - Incomplete delivery of securities. For example, a partial delivery has occurred if 100,000 shares of XYZ Corp. were to be delivered but, only 50,000 shares are actually delivered.
Penny Stock - General term most often referring to small or "micro-capitalization" stocks trading for less than $1 a share, although heavy promotion may lift prices temporarily higher. The Securities and Exchange Commission in effect, defines penny stocks through its regulations of broker sales practices where brokers are restricted from soliciting most unlisted stocks trading for less than $5 a share. Penny stocks by any definition should always be considered extremely speculative investments and not suitable for conservative accounts.
Philadelphia Stock Exchange - Regional stock exchange where a limited number of securities are bought and sold in the "third market."
Piggyback - Rights given to an investor or group of investors to register previously unregistered securities in the event of another registration by the issuing firm.
Pink Sheets - Publication of the National Quotation Bureau reporting bid and ask prices quoted by market makers for unlisted stocks. Once heavily used by investors and brokers trading unlisted stocks, the Pink Sheets have been largely replaced by the OTC Bulletin Board and its popular real-time electronic dealer quotation service.
Plus Tick - Term describing a trade in a security that was executed at a higher price than the previous trade; same as "Up Tick."
Portfolio - Generic term describing the collective securities holdings of an individual, group, institution or mutual fund.
Position - Refers to an investor's long or short holdings of a particular security.
Power of Attorney - Authority assigned by one person or party to another to act on behalf of the assigning party in either an unlimited authority or with specified limits.
Preferred Stock - Class of capital stock containing certain rights separate from those conferred by common shares of the company. Preferred shares seldom carry voting rights but are provided dividends and liquidation preference over common shareholders.
Premium - Generally describes any amount paid in excess of a reported value. In options, the term describes the amount of the price of an options contract in excess of the exercise value. In closed-end mutual funds, it refers to a fund whose share price exceeds its net asset value. In bonds, it refers to a bond whose market price is greater than its par, or face, value. For example, a bond with a face value of $1,000 would sell for a $100 premium if it costs $1,100.
Price/Earnings Ratio (P/E) - Ratio of a company’s or the overall stock market's current market value divided by previous 12 months' earnings per share. One of the most commonly used ratios in analyzing a company's share price, it reflects the value the market places on a firm's earning power.
Prime Rate - Interest rate banks charge their most credit-worthy customers; a key benchmark since loans to less credit-worthy customers are often tied to the prime rate.
Principal - Term with several financial definitions: (1) original investment in a bond, mortgage or other debt; (2) the balance of an obligation, separate from interest; (3) face amount of a debt instrument on which interest is owed or earned; (4) any important officer or director of a publicly-traded firm, or any investor owning 10% or more of its outstanding shares; (5) owner of a privately-held business; (6) an officer of a brokerage firm; (7) a brokerage firm buying or selling securities for its own account.
Private Placement - Offering of unregistered securities for sale to a limited number of private investors, individuals and institutions as defined under Regulation D of the Securities Act of 1933.
Profit - Gain from the sale of an asset, security or commodity.
Profit Taking - Expression often used to describe selling in a stock or the overall market which is motivated by investors desiring to sell their shares thus realizing profits, due to perceived overvaluation in the price of the shares or in reaction to unfavorable news or forecasts.
Prospectus - Legal document describing securities offered for sale; often used in connection with the sale of stocks in initial and secondary public offerings, private placements and mutual funds. A prospectus provides detailed information about the securities being offered as well as the use of proceeds and the business and financial condition of the issuer. Sometimes called an Offering Memorandum.
Proxy - Legal document used to convey a vote of a shareholder.
Prudent Man Rule - Rule established by the Securities Act of 1933 which makes financial advisors, stockbrokers and other fiduciaries responsible for acting in a prudent or responsible manner in the affairs of their clients. The standard establishes legal precedence against brokers and other financial representatives prohibiting the sale of unsuitable investments.
Public Offering - Offering of registered securities through a prospectus, to the investing public. (See "Initial Public Offering," "Secondary Offering")
Put - Contract to sell a specific security at a specified price by a certain date. (See "Options"). | 
