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

Category: P

POLYMER

A compound with a significantly large molecular weight, meaning it has a lot of simpler molecules of a simlar type. Examples of polymers include a lot of different common plastics.

PORCUPINE PROVISION

Methods adopted by large scale companies in order to secure themselves against a hostile takeover.

PORTFOLIO TURNOVER

The period of time it takes for any investment to get funded, until it is sold off or repaid.

POSITIVISM

A concept which states that only the knowledge of science is the one true knowledge of this world which can be perceived by an individual. It was established by Francis Bacon, a

POTENTIAL DOSE

A potential dose is the total amount of chemical that is present within any substance (liquid or solid) that has been swallowed by an individual.

PREDATORY LENDING

The use of several methods of lending, usually shady, which are used to gain unlawful benefits from borrowers.

PREFERRED BIDDER

A bidder who has been preferred over others, by a company who is holding an auction.

PENNY JUMPING

When a manager only fills offers on one side keeping the rest until they see how the market is going to behave. If things go well all are let out but if

POINT BARRIER OPTION

A barrier option whose barrier kicks in at only one time. This time is usually maturity. AKA european barrier option. Refer to partial barrier option.

POSITIVE YIELD CURVE

When short term interest rates are lower than long term rates. This indicates normal market yield. AKA upward sloping yield curve. Refer to kinked and negative yield curve.

PUT ON THE WORST OF NASSETS

An option where the buyer is paid the difference between the strike price and the worse performing asset in a portfolio. Refer to call on the best of nassets, call on the

PENNY STOCK

Stocks sold at less than one dollar. They are sold by companies in financial trouble, new companies, and ones removed from a larger market. The sales are recorded on a pink sheet.

POISON PILL

A takeover prevention strategy that makes stock look bad to the interested buyer. Refer to chewable, flipin, and flipover pill.

POT

A percent of new issue held by the manager to offer to the institutions investors.

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