Category: P

A written promise to pay a debt by a specific date. It can be turned to cash by transferring it to another party. See, What Is a Promissory Note? A Legal Guide

A loan whose collateral is securites that has to follow margin rules. The returns are used to purchase other securities. AKA margin loan. Refer to nonpurpose loan.

Stock shared by two companies on one certificate.

A security that pays out in other securities not cash. This occurs when a company is short on cash but has plenty of securites. Refer to reset in kind payment bonds.

The flow a deal makes through clients, banks, and firms. It shows how strong the financial sector is. AKA calendar and visible supply. Refer to shadow supply.

When an asset has higher gains than losses. An example of these are long options and bonds. Refer to negative convexity, nonlinear instrument, and positive gamma.

A swap where the receiver getting a fixed interest rates offers a payment to get increased fixed interest rates. Refer to discount swap.

Evidence proving loss that must be submitted to the insurer. It proves the claim is valid.

An option where the buyer can sell underlying put option back to the seller. Refer to call on a call, put on a call, and call on a put.

A swap made only in paper form. Or trade in the paper products line.

The amount of earnings paid to stockholders over the investments lifetime. This payment takes the form of common stock dividends. Refer to dividend yield and plowback ratio.

The amount of capital reinvested that are not paid to shareholders in the form of dividends.

When option purchases expose an investment to a larger price market. Refer to gamma and negative gamma.

The amount an insurer underwrites based on its premiums collected on active policies.

When an insurer must take their share of the losses based on a fixed or variable percentage or monetary value. Refer to excess of loss agreement.

An option where the buyer can sell underlying call option back to the seller. Refer to call on a call, call on a put, and put on a put.

The value of a security at the time of issuance.

When national currency gets its value from another countries currency system. Or when a security company tries to keep its prices close to par value. Refer to crawling peg and managed foreign

A plus + placed on a record when a security is sold at a higher price than previously considered. This initiates a short sale. AKA uptick. Refer to minus, zero plus, and

When assets are greater than liabilies. Refer to gap, gapping, and negative gap.