Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: Finance

POLYPROPYLENE (PP)

A plastic that has a very smooth surface, and can be cracked easily, but is resistant to scatches. It is commonly used for the manufacture of battery cases, straws and other items

PORTABILITY

The degree to which any software program can be executed on different software or hardware platforms. Generally, software that has been written with Java as the primary programming language has the ability

POSITION RISK

The risk involved with a certain trading position, commonly incurred due to the changes in price.

POSTDATED CHECK

A check whose date lies within the near future. A post dated check can be cashed in on the future date.

POTENTIATION

The coupled action produced by two chemicals; usually greater than the amount of action produced individually.

PREAUTHORIZED PAYMENT

An arrangement between a bank and its customer, allowing the bank to debit the client’s account for a loan or any installment that is payable.

PREEMPT SPOT

Booking a certain slot for a TV commercial, etc. in advance. It can be switched in case another advertiser decides to pay full money for a certain slot.

PREMIUM OFFER

A technique in which two or more products are sold in one piece, as a bundle. Generally, a premium offer is used to increase sales of a product.

NUMERAIRE

1. Economics: A commodity that is the basis on which the prices of all other commodities are measured. 2. Finance: The currency that is the basis of expression for all other currencies.

OBJECT ORIENTED

An operating system that utilizes objects in its user interface or programming language.

OFF PEAK

A product that is usually offered at a lower price during a period of minimal demand.

OFFICIOUS BYSTANDER TEST

A test used to determine if an unstated condition was originally implied at the time of writing the contract. In the method, an investigator tries to determine if the contracting parties had

OFFSHORE TRUST

A trust that is set up in a location, usually another country, different from the trustor’s location.

OLD ECONOMY

Economies having their roots in the Industrial Revolution and the bulk manufacturing of physical goods, whose objects are valued based on their physical properties. These include the energy sector, the steel and

ON MARGIN

This is when a securities broker funds a portion of a client’s purchase, with the client paying the rest. The broker keeps the purchased securities as collateral.

ONLINE

1. A device that is connected to the Internet or other network. 2. Documents, files or web page that are accessible for reading and downloading by users of a particular network (usually

OODA LOOP

A concept that sees decision making as the next logical step of a specific process. If a decision has been made, an action has to be taken.

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