The smallest increment of price movement possible in trading a given futures contract.
Portfolio
A collection of securities held by an investor.
Position limit
The maximum position, either net long or net short, in one commodity future or in all futures of one commodity combined which may be held or controlled by one person.
Preferential form
The London Stock Exchange allows companies offering shares to the public to set aside up to 10% of the issue for applications from employees and, where a parent company is floating off a subsidiary, from shareholders of the parent company.
Preferred ordinary shares
Preferred stock
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.
