Terms Starting with P

The p-value is a statistical measure that helps determine the significance of the results obtained from a data set, indicating the probability of observing results at least as extreme as those measured when the null hypothesis is true.

A partnership is a legal arrangement where two or more parties, known as partners, agree to cooperate to advance their mutual interests.

Penny stocks refer to shares of small companies that trade for less than $5 per share, often characterized by high volatility and low market capitalization.

Per Capita GDP measures the average economic output per person in a specific area, typically a country, by dividing the total GDP by the population.

Perfect competition is a market structure where numerous small firms compete against each other, and none can influence market prices due to their size.

The Phillips Curve is an economic concept that illustrates an inverse relationship between the rate of unemployment and the rate of inflation within an economy.

A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. The scheme generates returns for earlier investors by acquiring new investors.

Porter's Five Forces is a framework for analyzing the competitive environment of an industry. It helps businesses assess the potential profitability of an industry by examining five key sources of competitive pressure.

Positive correlation occurs when two variables move in the same direction, meaning as one variable increases, the other also increases.

Pre-market trading refers to the buying and selling of stocks that occurs before the official opening of the stock market.

Preference shares are a type of stock that provides shareholders with preferential rights to dividends and asset distribution over common stockholders, but typically do not carry voting rights.

Preferred stock is a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock. Preferred shareholders typically receive dividends before common shareholders and have priority in the event of liquidation, but they usually do not have voting rights.

Present Value (PV) is the current worth of a future sum of money or stream of cash flows given a specified rate of return.

The Price-to-Earnings Ratio (P/E Ratio) is a valuation metric used to assess how much investors are paying for a dollar of a company's earnings.

The Price/Earnings-to-Growth (PEG) Ratio is a stock valuation metric that measures the relationship between the price of a stock, its earnings per share, and its expected growth rate.

Pro rata is a Latin term used to describe a proportionate allocation. It refers to the equitable distribution of something based on a certain rate, percentage, or amount.

The Producer Price Index (PPI) measures the average change over time in the selling prices received by domestic producers for their output. It's a key indicator of inflation at the wholesale level.

Profit is the financial gain realized when the revenue from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

A Profit and Loss Statement (P&L) is a financial report that summarizes the revenues, costs, and expenses incurred during a specific period, typically a fiscal quarter or year, to show a company's net earnings or losses.

A promissory note is a financial document in which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time or on demand of the payee, under specific terms.

A prospectus is a formal legal document that provides details about an investment offering to the public, typically used by companies during an initial public offering (IPO) or by mutual funds to outline fund objectives, strategies, and risks.

A Public Limited Company (PLC) is a type of corporation in the UK and some other countries that is permitted to offer its shares to the public via a stock exchange.

A put option is a financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a predetermined price within a specified time frame.