Participating Preferred Stock
What is Participating Preferred Stock Participating preferred stock is a type of preference stock that gives the holder the right to participate in any additional dividends that are declared by the company, in addition to receiving a specified dividend. This participation feature is what distinguishes participating preferred stock from other types of preference stock. For example, if a company declares...
Party Wall
DefinitionA party wall is a dividing partition between two adjoining buildings that is shared by the occupants of each residence or business. Typically, the builder lays the wall along a property line dividing two terraced houses, so that one half of the wall's thickness lies on each side. This type of wall is usually structural. Party walls can also...
Pass-Through Security
What is 'Pass-Through Security' A pass-through security is a pool of fixed-income securities backed by a package of assets. A servicing intermediary collects the monthly payments from issuers and, after deducting a fee, remits or passes them through to the holders of the pass-through security. It is also known as a "pass-through certificate" or "pay-through security." ...
Participatory Notes
DefinitionParticipatory Notes commonly known as P-Notes or PNs are instruments issued by registered foreign institutional investors to overseas investors, who wish to invest in the Indian stock markets without registering themselves with the market regulator, the Securities and Exchange Board of India - SEBI. Participatory Notes What are 'Participatory Notes' Participatory notes, also referred to as "P-notes,"...
Passive Loss
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 any trade or business enterprise in which the investor is not a material participant. Passive losses can stem from investments...
Paper Dealer
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 to investors on behalf of borrowing corporations and to make a market in commercial paper, setting prices at which it...
Past Due Balance Method
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 whereby credit card holders have until a specified date to pay balances off before beginning to accrue interest fees. For...
Payday Loans
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 provided against a prearranged line of credit such as a credit card. Payday advance loans rely on the consumer having...
Partial Redemption
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, an investor may prefer to keep a portion of the value invested in the asset while still obtaining some cash....
Pale Recession
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 particular, Greenspan was speaking of the U.S. employment numbers at the time, which had not yet seen as significant of...