DefinitionPassive income is income resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it. Passive Loss What is 'Passive Loss' A financial loss within an investment in...
What is 'Paper Dealer' A market maker that buys and sells extremely short-term corporate bonds called commercial paper. A paper dealer is typically a large financial firm that has the capital and sophistication to distribute commercial paper...
What is 'Past Due Balance Method' A system for calculating interest charges based on any outstanding loan or credit charges that remain unpaid after a certain date. The past due balance method is used by credit companies...
DefinitionA payday loan is a small, short-term unsecured loan, "regardless of whether repayment of loans is linked to a borrower's payday." The loans are also sometimes referred to as "cash advances," though that term can also refer to cash...
What is 'Partial Redemption' An investment-transaction classification that refers to the withdrawal of a portion of a security's value by the owner. Rather than withdrawing the entire amount of his or her security's value from the account,...
What is 'Pale Recession' A phrase used in May 2008 by former Federal Reserve Board Chairman Alan Greenspan to describe an economic environment in which recession has not yet hit all the areas of the economy. In...
DefinitionPassive management is an investing strategy that tracks a market-weighted index or portfolio. The most popular method is to mimic the performance of an externally specified index by buying an index fund. By tracking an index, an investment portfolio...
What is 'Paper Profit (Paper Loss)' Unrealized capital gain (or capital loss) in an investment. It is calculated by comparing the market price of a security to the original purchase price. Gains or losses only become realized...
What is 'Passive Activity' Passive activity is activity in which the taxpayer did not materially participate in during the tax year. Internal Revenue Service (IRS) defines two types of passive activity: trade or business activities not materially...
DefinitionPairing Off is an album by saxophonist Phil Woods' Septet recorded in 1956 and released on the Prestige label. Pairing Off What is 'Pairing Off' An illegal practice of a brokerage firm offsetting short and long positions...