Glossary P

Glossary P

Participation rate

The percentage of the total investment amount that an investor is allowed to invest in a particular security.

  • Structured Products Vs. Derivatives: Complex Investments (Demystified)
  • Pension funds

    Investment funds set up to provide retirement benefits to employees.

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  • Performance reporting

    The process of measuring and reporting the performance of a portfolio or investment.

  • Asset Management Vs. Investment Banking: Roles (Distinct)
  • Personalization of services

    Customizing services to meet the specific needs of individual clients.

  • Asset Management Vs. Investment Banking: Roles (Distinct)
  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • PESTEL analysis

    A framework used to analyze the external factors that affect a company’s business environment.

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  • Pitch Book

    A presentation used by investment bankers to pitch their services to potential clients.

  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Poison pill

    A defense mechanism used by companies to prevent hostile takeovers.

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  • Portfolio companies

    Companies in which a private equity firm has invested.

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  • Portfolio diversification

    Spreading investments across different asset classes to reduce risk.

  • Asset Management Vs. Investment Banking: Roles (Distinct)
  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
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  • Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
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  • Portfolio Management

    The process of overseeing a portfolio of investments to achieve specific financial goals.

  • Asset Management Vs. Investment Banking: Roles (Distinct)
  • Portfolio optimization

    The process of selecting the optimal mix of assets to achieve a desired level of return with minimal risk.

  • Asset Management Vs. Investment Banking: Roles (Distinct)
  • Portfolio optimization methods

    Mathematical techniques used to maximize portfolio returns while minimizing risk.

  • Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
  • Portfolio rebalancing

    Adjusting the allocation of assets in a portfolio to maintain desired risk and return levels.

  • Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
  • Positioning

    The process of identifying a company’s unique selling proposition and target market.

  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Position limits

    The maximum amount of a security that an investor or trader can hold.

  • Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
  • Post-Market Analysis

    The process of analyzing market data after the market has closed.

  • Primary Issuance Vs. Secondary Trading: Market Phases (Defined)
  • Precedent Transaction Analysis (PTA)

    A valuation method that uses historical transactions to determine the value of a company.

  • Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
  • Private Equity Vs. Venture Capital: Investment (Comparison)
  • Predatory pricing

    The practice of setting prices below cost in order to drive competitors out of business.

  • Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
  • Preferred stock

    A type of stock that pays a fixed dividend and has priority over common stock in the event of liquidation.

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  • Private Equity Vs. Venture Capital: Investment (Comparison)
  • Pre-IPO Phase

    The period before a company goes public, during which it prepares for the IPO.

  • Primary Issuance Vs. Secondary Trading: Market Phases (Defined)
  • Price discovery

    The process of determining the market price of a security through supply and demand.

  • IPO Vs. Direct Listing: Understanding Public Offerings (Demystified)
  • Primary Vs. Secondary Markets: Investment Banking (Defined)
  • Primary Issuance Vs. Secondary Trading: Market Phases (Defined)
  • Price Discovery Phase

    The period during which the market determines the fair value of a security.

  • Primary Issuance Vs. Secondary Trading: Market Phases (Defined)
  • Price fixing

    The illegal practice of colluding with competitors to set prices for goods or services.

  • Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
  • Pricing of securities

    The process of determining the value of a security based on market demand and supply.

  • Primary Issuance Vs. Secondary Trading: Market Phases (Defined)
  • Pricing of shares

    The process of determining the value of a company’s shares.

  • Primary Vs. Secondary Markets: Investment Banking (Defined)
  • Pricing strategy

    The method used to set the price of a product or service.

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  • Primary issuance

    The process of issuing new securities to the public for the first time.

  • Primary Issuance Vs. Secondary Trading: Market Phases (Defined)
  • Primary Market

    The market in which new securities are issued and sold to the public for the first time.

  • Primary Vs. Secondary Markets: Investment Banking (Defined)
  • Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
  • Principal protection

    A strategy that aims to protect the initial investment amount from losses.

  • Structured Products Vs. Derivatives: Complex Investments (Demystified)
  • Principal protection feature

    A feature of an investment product that guarantees the return of the initial investment amount.

  • Structured Products Vs. Derivatives: Complex Investments (Demystified)
  • Private banking

    Banking services provided to high net worth individuals and families.

  • Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
  • Private equity

    Investments made in private companies or public companies that are taken private.

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  • Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
  • Asset Management Vs. Investment Banking: Roles (Distinct)
  • Private equity firms

    Investment firms that invest in private companies or take public companies private.

  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
  • Private placement

    The sale of securities to a small group of investors, typically institutional investors or high net worth individuals.

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  • Equity Vs. Debt Financing: Investment Banking (Explained)
  • IPO Vs. Direct Listing: Understanding Public Offerings (Demystified)
  • Product differentiation

    The process of distinguishing a company’s products or services from those of its competitors.

  • Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
  • Professionalism

    The conduct, behavior, and attitude expected of individuals in a particular profession.

  • Asset Management Vs. Investment Banking: Roles (Distinct)
  • Profit Maximization Objective

    The goal of maximizing profits for a company or investor.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Proofreading and editing

    The process of reviewing and correcting written material for errors in grammar, spelling, and punctuation.

  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Prospectus

    A legal document that provides information about a company’s securities to potential investors.

  • IPO Vs. Direct Listing: Understanding Public Offerings (Demystified)
  • Equity Vs. Debt Financing: Investment Banking (Explained)
  • Primary Issuance Vs. Secondary Trading: Market Phases (Defined)
  • Primary Vs. Secondary Markets: Investment Banking (Defined)
  • Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
  • Proxy fight

    A battle for control of a company in which shareholders attempt to gain enough votes to replace the current board of directors.

  • Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
  • Public Listing

    The process of a company offering its shares to the public for the first time.

  • Primary Issuance Vs. Secondary Trading: Market Phases (Defined)
  • Publicly traded companies

    Companies whose shares are traded on a public stock exchange.

  • Primary Vs. Secondary Markets: Investment Banking (Defined)
  • 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.

  • Private Equity Vs. Venture Capital: Investment (Comparison)