Pareto Improvement
What is Pareto Improvement Pareto Improvement is defined as a change to a situation which results in one person becoming better off without anyone else becoming worse off. The term was first coined by economist Vilfredo Pareto, who observed that 20% of the population owned 80% of the wealth. He believed that it was possible to make society more efficient by...
Pairoff
What is 'Pairoff' 1. A purchase of securities to offset a previously transacted sale of the same security. 2. A transaction in securities markets where off-setting buy and sell trades are settled in cash, based on the difference in the prices between the off-setting trades. No securities trade hands; instead the settlement difference between the...
Participating Policy
DefinitionA with-profits policy or participating policy is an insurance contract that participates in the profits of a life insurance company. The company is often a mutual life insurance company, or had been one when it began its with-profits product line. Similar arrangements are found in other countries such as those in continental Europe. Participating Policy What is a...
Partially Convertible Debenture (PCD)
What is 'Partially Convertible Debenture - PCD' A type of convertible debenture, part of which will be redeemed by the issuing company after a specified period of time and part of which is convertible into equity or preference shares at the end of the specified period. The ratio of conversion for the partially convertible debenture is decided...
Ponzi Scheme
DefinitionBy definition, a Ponzi scheme is a fraudulent investment that involves the payment of purported returns to existing investors from funds contributed by new investors. It is an investment system where the investment profits are paid with the money from other investors, and those who experience profit believe the profits come from non-investors such as business activities, or the...
Private Equity
DefinitionPrivate equity typically refers to investment funds organized as limited partnerships that are not publicly traded and whose investors are typically large institutional investors, university endowments, or wealthy individuals. Private equity firms are known for their extensive use of debt financing to purchase companies, which they restructure and attempt to resell for a higher value. Debt financing reduces corporate...
Patent
What is a 'Patent' A patent is a government license that gives the holder exclusive rights to a process, design or new invention for a designated period of time. Applications for patents are usually handled by a government agency. In the United States, the U.S. Patent and Trademark Office handles application and documentation. Explaining 'Patent' ...
Participation Rate
DefinitionThe workforce or labour force is the labour pool in employment. It is generally used to describe those working for a single company or industry, but can also apply to a geographic region like a city, state, or country. Within a company, its value can be labelled as its "Workforce in Place". The workforce of a country includes both...
Paradigm Shift
What is a 'Paradigm Shift' A paradigm shift is a major change in how some process is accomplished. A paradigm shift can happen when new technology is introduced that radically alters the production process of a good. For example, the assembly line created a substantial paradigm shift not only in the auto industry, but in all other...
Parity Product
Definition Product categories or groups of categories in which the numerous brands within that category have functionally comparable features are referred to be parity products. This means that one brand may serve as a sufficient alternative for the majority of the other brands in the same category. It is a product or service that fits a demand that a customer...