In the UK, the price used to assess the value of shares for inheritance tax purposes. The probate price is calculated by dividing the difference between the bid and offer prices by 4 and adding the result to the lower of the 2 prices.
Program trade
Program trading is defined as a wide range of portfolio trading strategies involving the purchase or sale of 15 or more stocks having a total market value of USD1 million or more.
Prospectus
A document giving the details that a company is required to make public, to support a new issue of shares.
Proximity hosting
The term "co-location/proximity hosting services" means space, power, telecommunications, and other ancillary products and services made available to market participants for the purpose of enabling them to position their computer systems/servers in close proximity to the derivatives transaction execution facility's trade and execution systems. Co-location allows trading firms to place their trading systems next to an exchange’s servers, giving them the ability to execute strategies at high speed through computer algorithms.
Proxy
A form which, when completed by the shareholder, grants another person the authorisation or power to vote on his/her behalf at company meetings.
Public Limited Company (PLC)
In the UK, a public company limited by shares and having a share capital, and which may offer shares for purchase by the general public. Only PLCs may qualify for listing or trading on the London Stock Exchange.
Put option
A put option confers the right but not the obligation to sell stock, shares or futures at the option exercise price within a predetermined time period.
Quotation
The price quoted by a market-maker at which he/she will trade.
Quotation size
The maximum number of shares per order of a particular security that a Market Maker is willing to buy or sell at his or her current price.
Quote-driven system
A service that does not allow automatic execution. Trading of quote-driven securities is conducted via telephone dealing.
