Super Finance Glossary

Over 10,000 financial glossary terms...

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Browsing by the letter "P"

Displaying next 80 results of 668
Party In Interest
Definition: An ERISA-specified individual—such as an administrator, officer, fiduciary, trustee, custodian, or counsel—who is prohibited from making certain transactions involving a retirement plan. A trustee, for example, would be prohibited from using an IRA as collateral for a loan.
Pass The Book
Definition: The process of transferring responsibility for a brokerage firm's trading account from one office to another around the world in order to benefit from trading 24 hours a day.
Pass-through Coupon Rate
Definition: The interest rate paid on a securitized pool of assets, which is less than the rate paid on the underlying loans by an amount equal to the servicing and guaranteeing fees.
Pass-through Rate
Definition: The net interest rate passed through to investors after deducting servicing, management, and guarantee fees from the gross mortgage coupon.
Pass-through Receivership
Definition: A resolution term used when all deposits, substantially all assets, and certain nondeposit liabilities of the original institution instantly "passed through the receiver" to a newly chartered federal mutual association, subsequently known as the "conservatorship."
Pass-through Securities
Definition: A pool of fixed income securities backed by a package of assets (i.e., mortgages) where the holder receives the principal and interest payments. Related: Mortgage pass-through security
Passive
Definition: Income or loss from business activities in which a person does not materially participate, such as a limited partnership.
Passive Activity Loss (PAL)
Definition: A loss incurred in participating in passive investing.
Passive Bond
Definition: A bond without any interest yield.
Passive Income
Definition: Income (such as investment income) that does not come from active participation in a business. Specified by the U.S. tax code.
Passive Income Generator (PIG)
Definition: An investment that favors passive income, such as an income-oriented real estate limited partnership.
Passive Investing
Definition: Putting money into a profitable business opportunity that is deemed passive by the IRS and thus benefits from tax deductions.
Passive Investment Management
Definition: Buying a well diversified portfolio to represent a broad-based market index without attempting to search out mispriced securities.
Passive Portfolio
Definition: A market index portfolio.
Passive Portfolio Strategy
Definition: A strategy that involves minimal expectational input, and instead relies on diversification to match the performance of some market index. A passive strategy assumes that the marketplace will reflect all available information in the price paid for securities, and therefore, does not attempt to find mispriced securities. Related: Active portfolio strategy.
Patent
Definition: The exclusive right to use documented intellectual property in producing or selling a particular product or using a process for a designated period of time.
Path Dependent Option
Definition: An option whose valuation and payoff depends on the realized price path of the underlying asset, such as an Asian option or a Lookback option.
Path-dependent Option
Definition: An option whose value depends on the sequence of prices of the underlying asset rather than just the final price of the asset.
Pattern
Definition: A technical chart formation used to make market predictions by following the price movements of securities.
Pay-as-you-go Basis
Definition: A method of paying income tax in which the employer deducts a portion of an employee's monthly salary to remit to the IRS.
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