Glossary P
Participation rate
The percentage of the total investment amount that an investor is allowed to invest in a particular security.
Pension funds
Investment funds set up to provide retirement benefits to employees.
Performance reporting
The process of measuring and reporting the performance of a portfolio or investment.
Personalization of services
Customizing services to meet the specific needs of individual clients.
PESTEL analysis
A framework used to analyze the external factors that affect a company’s business environment.
Pitch Book
A presentation used by investment bankers to pitch their services to potential clients.
Poison pill
A defense mechanism used by companies to prevent hostile takeovers.
Portfolio companies
Companies in which a private equity firm has invested.
Portfolio diversification
Spreading investments across different asset classes to reduce risk.
Portfolio Management
The process of overseeing a portfolio of investments to achieve specific financial goals.
Portfolio optimization
The process of selecting the optimal mix of assets to achieve a desired level of return with minimal risk.
Portfolio optimization methods
Mathematical techniques used to maximize portfolio returns while minimizing risk.
Portfolio rebalancing
Adjusting the allocation of assets in a portfolio to maintain desired risk and return levels.
Positioning
The process of identifying a company’s unique selling proposition and target market.
Position limits
The maximum amount of a security that an investor or trader can hold.
Post-Market Analysis
The process of analyzing market data after the market has closed.
Precedent Transaction Analysis (PTA)
A valuation method that uses historical transactions to determine the value of a company.
Predatory pricing
The practice of setting prices below cost in order to drive competitors out of business.
Preferred stock
A type of stock that pays a fixed dividend and has priority over common stock in the event of liquidation.
Pre-IPO Phase
The period before a company goes public, during which it prepares for the IPO.
Price discovery
The process of determining the market price of a security through supply and demand.
Price Discovery Phase
The period during which the market determines the fair value of a security.
Price fixing
The illegal practice of colluding with competitors to set prices for goods or services.
Pricing of securities
The process of determining the value of a security based on market demand and supply.
Pricing of shares
The process of determining the value of a company’s shares.
Pricing strategy
The method used to set the price of a product or service.
Primary issuance
The process of issuing new securities to the public for the first time.
Primary Market
The market in which new securities are issued and sold to the public for the first time.
Principal protection
A strategy that aims to protect the initial investment amount from losses.
Principal protection feature
A feature of an investment product that guarantees the return of the initial investment amount.
Private banking
Banking services provided to high net worth individuals and families.
Private equity
Investments made in private companies or public companies that are taken private.
Private equity firms
Investment firms that invest in private companies or take public companies private.
Private placement
The sale of securities to a small group of investors, typically institutional investors or high net worth individuals.
Product differentiation
The process of distinguishing a company’s products or services from those of its competitors.
Professionalism
The conduct, behavior, and attitude expected of individuals in a particular profession.
Profit Maximization Objective
The goal of maximizing profits for a company or investor.
Proofreading and editing
The process of reviewing and correcting written material for errors in grammar, spelling, and punctuation.
Prospectus
A legal document that provides information about a company’s securities to potential investors.
Proxy fight
A battle for control of a company in which shareholders attempt to gain enough votes to replace the current board of directors.
Public Listing
The process of a company offering its shares to the public for the first time.
Publicly traded companies
Companies whose shares are traded on a public stock exchange.
Put option
A financial contract that gives the holder the right, but not the obligation, to sell an asset at a specified price within a specified time frame.