Luxweb Finance, le monde de la finance au Luxembourg

Glossary	Financial Newsletter
This glossary contains over 500 financial terms and definitions to help you get a better understanding of the world's financial markets. Select from the following menu to start navigating through the Luxweb Finance glossary.

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Pari Passu	A corporate action in which a line of stock is issued by a company which is identical to the existing class of security except that it does not qualify for the dividend or has some restriction.
Parity	A term used to denote that shares or commodities are the same price in different markets.
Payback Period	The time it takes for an investment to generate sufficient returns to payback its cost.
Peg	Link between one currency and another.
Penny shares	Low cost shares, so every penny represents a high percentage of the share's value.
PMT	Perfect Market Theory, Assumption that prices automatically find their correct level.
PIA	Personal Investment Authority is a self-regulatory authority that is concerned with the regulation of all types of investment that is aimed at or marketed to private investors with a view to insuring that these invstors are treated fairly.
Phantom	Pretend shares or options. Key employees are often given them as part of their pay and perks.
Pit	The common name for the area where dealings take place in derivative markets.
PVI	The Positive Volume Index monitors whether volume has increased from the previous day.
Pre-emption Rights	The rights of existing shareholders to maintain their proportionate ownership of a company.
Premium	The amount a buyer of an options contract pays to acquire the contract.
Price to Book Ratio	The ratio between the market price of an ordinary share and the book value of the share. High ratio would indicate a high market valuation of the company.
Put Option	A put option gives the holder the right, but not the obligation, to sell an underlying asset at a predetermined price at or before a fixed date.