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

PREFEASIBILITY STUDY

When large projects are to be constructed, a prefeasibility study is carried out in order to decide whether or not the project will be worth proceeding with or not.

PREFERENTIAL TRADE AGREEMENT (PTA)

A pact of trade, formed between two or more countries, allowing them to reduce the tariffs charged on specific goods during trade with each other. Even though the tariffs aren’t completely removed,

PREFERENCE SHARE CAPITAL

Those who have invested are liable to receive payment before others, though they can forego their shareholder privileges.

PREFERRED HABITAT THEORY

A theory which states that individual investors generally have a preferred limit of lengths when it comes to the maturity of any bond, and an investor is only liable to go out

PRE-EXPORT FINANCING

Loans that are provided to exporting companies, after the lenders carefully check and ensure that orders have been placed for the goods, hence ensuring that they will get returns for their loans.

PREEMPTION RIGHT

A right/ advantage given out to the present stock holders, allowing them to gain the first option in case a house or property is being sold. It can also mean a right

PRECIOUS METALS

Metals such as gold, iridium, platinum, rhodium, ruthenium, osium, silver, etc. Usually available in forms of bars, leaves, powders, wires, etc.

PREFERRED BIDDER

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

PRELIMINARY INJUNCTION

An injunction granted before the trial has started, which states that the plaintiff will suffer extensive damage in case the injunction is not granted. Security must be posted with the court in

PRE-FUNDED BOND

A bond that has been issued by the government. Generally, it is already backed up by several securities of the government which are set in escrow.

PREMISES BURGLARY

A term commonly used to describe a burglary that was caused at the premises of the insured party.

PREFERRED PROVIDER ORGANIZATION (PPO)

A group of different personnel who are ready to provide treatment to members of the group for a preset fee. It is usually another option as compared to a HMO network, which

PREFERRED DEBT

Any debt which is discharged before any other debt is paid off.

PREDICTIVE MAINTENANCE

Maintenance work that is carried out on a certain item/ machine/ building, etc. before it is actually required. Generally done so as to keep the system working in a top notch condition.

PREMATURITY

A situation in which the claim launched by the plaintiff hasn’t fully grown to become an actual claim.

PREMISE

Any assumption or information which forms the basis of a conclusion.

POVERTY

A term used to denote a condition in which people are unable to meet their basic necessities, due to lack of money or skill. There are two primary terms used to denote

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