Alphabetical - P

Package	A derivative that is a portfolio of standard calls and puts, possibly combined with a position in forward contracts and the asset itself.
PAR	The nominal value of a security, for example $1000 for US treasury bonds or £100 for UK government bonds
Par Frequency	??
Par Value	The principal amount of a bond
Par Yield	The coupon on a bond that makes its price equal the principal.
Parallel Shift	A movement in the yield curve where each point on the curve changes by the same amount.
Partially Unwound	??
Passive	Often used to refer to long only investment
Path-Dependent Option	An option whose payoff depends on the whole path followed by the underlying variable - not just its final value.
Payoff	The cash realised by the holder of an option or other derivtaive at the end of its life.
PB Ratio	Price/Book ratio
PE Ratio	Price/Earnings ratio - Ratio of share price to earnings after tax
Pension Funds	The groups that administer pensions schemes.
Perpetual	A security without time limit for redemption
Perpetuity	??
Physical	??
PIBOR	Paris Interbank Offered Rate
PIK	Payment in Kind (pic payment)
Placing	A method of bringing a company to the market.
Plain Vanilla	A term used to describe a standard deal
Portfolio Immunization	Making a portfolio relatively insensitive to interest rates.
Portfolio Insurance	Entering into trades to ensure that the value of a portfolio will not fall below a certain level.
Position Limit	The maximum position a trader (a group of traders acting together) is allowed to hold.
PPP	Purchasing Power Parity
Preference Share	Dividend is paid as a fixed percentage.
Premia	The plural of risk premium.
Premium Bond	??
Prepayment Function	A function estimating the prepayment of principal on a portfolio of mortgages in terms of other variables.
Pre-Refunded	??
Primary Market	Markets where securities are sold when first issued.
Prime Broker	??
Principal	The par or face value of a debt instrument.
Principal Only	A mortgage backed security where the holder receives only principal cash flows on the underlying mortgage.
Private Banking	Specialist banking services for high net worth individuals
Privatisation	Conversion of a state run company to a public limited status.
Program Trading	A procedure where trades are automatically generated by a computer and transmitted to the trading floor of an exchange.
Promissory Note	A signed promise to pay a sum of money
Prospective Dividend	The dividend which has been forecast for its current yield
Protective Put	A put option combined with a long position in the underlying.
PSBR	??
Purchasing Power Parity	The belief that inflationary differentials between countires are the long-run determininants of currency movements.
Put Bonds	??
Put Option	??
Put-Call Parity	The relationship between the price of a European call option and the price of a European put option when they have the same strike price and the same maturity date.
Puttable Bond	A bond where the holder has the right to sell it back to the issuer at certain predetermined times for a predetermined price.
Puttable Swap	A swap where one side has the right to terminate early.

Package A derivative that is a portfolio of standard calls and puts, possibly combined with a position in forward contracts and the asset itself.
PAR The nominal value of a security, for example $1000 for US treasury bonds or £100 for UK government bonds
Par Frequency ??
Par Value The principal amount of a bond
Par Yield The coupon on a bond that makes its price equal the principal.
Parallel Shift A movement in the yield curve where each point on the curve changes by the same amount.
Partially Unwound ??
Passive Often used to refer to long only investment
Path-Dependent Option An option whose payoff depends on the whole path followed by the underlying variable - not just its final value.
Payoff The cash realised by the holder of an option or other derivtaive at the end of its life.
PB Ratio Price/Book ratio
PE Ratio Price/Earnings ratio - Ratio of share price to earnings after tax
Pension Funds The groups that administer pensions schemes.
Perpetual A security without time limit for redemption
Perpetuity ??
Physical ??
PIBOR Paris Interbank Offered Rate
PIK Payment in Kind (pic payment)
Placing A method of bringing a company to the market.
Plain Vanilla A term used to describe a standard deal
Portfolio Immunization Making a portfolio relatively insensitive to interest rates.
Portfolio Insurance Entering into trades to ensure that the value of a portfolio will not fall below a certain level.
Position Limit The maximum position a trader (a group of traders acting together) is allowed to hold.
PPP Purchasing Power Parity
Preference Share Dividend is paid as a fixed percentage.
Premia The plural of risk premium.
Premium Bond ??
Prepayment Function A function estimating the prepayment of principal on a portfolio of mortgages in terms of other variables.
Pre-Refunded ??
Primary Market Markets where securities are sold when first issued.
Prime Broker ??
Principal The par or face value of a debt instrument.
Principal Only A mortgage backed security where the holder receives only principal cash flows on the underlying mortgage.
Private Banking Specialist banking services for high net worth individuals
Privatisation Conversion of a state run company to a public limited status.
Program Trading A procedure where trades are automatically generated by a computer and transmitted to the trading floor of an exchange.
Promissory Note A signed promise to pay a sum of money
Prospective Dividend The dividend which has been forecast for its current yield
Protective Put A put option combined with a long position in the underlying.
PSBR ??
Purchasing Power Parity The belief that inflationary differentials between countires are the long-run determininants of currency movements.
Put Bonds ??
Put Option ??
Put-Call Parity The relationship between the price of a European call option and the price of a European put option when they have the same strike price and the same maturity date.
Puttable Bond A bond where the holder has the right to sell it back to the issuer at certain predetermined times for a predetermined price.
Puttable Swap A swap where one side has the right to terminate early.