Shares that pay dividends at a specified or sometimes adjustable rate and have preference over ordinary shares (common stock) in the payment of dividends and liquidation of assets.
Premium
(i) Options, the price a put or call buyer must pay to a put or call seller for an option contract. (ii) The amount by which the market price of a bond exceeds its par value.
Present value
The discounted value of future cash flows.
Price-earnings ratio
Current price of a stock divided by its trailing 12-months earnings.
Primary market
The market relating to the original issue or 1st sale of new securities.
Principal
A dealer who buys or sells stock for his/her own account.
Principal orders
Activity by a broker/dealer when buying or selling for its own account and risk. Also called principal trades.
Principal trades
Private placement
An issue that is offered to a single or a few investors as opposed to being publicly offered.
Privatisation
The conversion of a state run company to PLC status, often accompanied by a sale of its shares to the public.
