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	??
Present Value	This is the sum of future cash flows.
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 ??
Present Value This is the sum of future cash flows.
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.