Passive Activity Loss Rules
What is 'Passive Activity Loss Rules' A set of rules that prohibits using passive losses to offset earned or ordinary income. Passive activity loss rules prevent investors from using losses incurred from income-producing activities in which they are not materially involved. Being materially involved with earned or ordinary income-producing activities means the income is active income...
Parity
What is 'Parity' Parity refers to two things being equal to each other. The term "par value" for a bond is similar to parity. Parity can also refer to two securities having equal value, such as a convertible bond and the value of the stock if the bondholder chooses to convert into common stock. Explaining 'Parity'...
Parasitic Advertising
What is 'Parasitic Advertising' A type of marketing that promotes one product at the cost of lost sales for another product. Parasitic advertising often occurs when two products are close substitutes for one another. Firms generally attempt to avoid parasitic advertising within their own product offerings because it is not the most effective way of maximizing the...
Price Earnings to Growth
Price/Earnings to Growth also known as the PEG, is a type of financial ratio that is used to determine the value of a stock while taking into account the growth rate of the company’s earnings. In other words it can be defined as a financial valuation metric that is used to determine the tradeoff between the stock, EPS and...
Panic Selling
DefinitionPanic selling is a wide-scale selling of an investment which causes a sharp decline in prices. Specifically, an investor wants to get out of an investment with little regard of the price obtained. The selling activity is problematic because the investor is selling in reaction to emotion and fear, rather than evaluating the fundamentals. Most major stock exchanges use...
Palladium
What is Palladium and what are its uses Palladium is a chemical element with the symbol PD and atomic number 46. It is a rare and lustrous silvery-white metal found in sulfide deposits and used regularly in electronic applications. Palladium was first discovered by William Hyde Wollaston in 1803. He named it after the newly discovered asteroid Pallas. Although palladium...
Pari-Mutuel Revenues
What are pari-mutuel revenues and how are they generated Pari-mutuel revenues are a type of betting where the total payouts are calculated based on the total amount of money wagered, minus a small fee for the house. This system is often used in horse racing, but can also be used in other types of gambling, such as dog racing and...
Paris Hilton Stock Index
What is 'Paris Hilton Stock Index' A stock index comprised of companies associated with the socialite Paris Hilton. Some investors conceive her influence on the consumer spending habits of her fans is material enough to give these companies a competitive advantage. Explaining 'Paris Hilton Stock Index' The concept behind the Paris Hilton Index resides...
Parsonage Allowance
Did you know that you could receive a parsonage allowance? A parsonage allowance is a tax-free housing allowance given to ministers, priests, and rabbis. Let's take a closer look at what a parsonage allowance is, who is eligible for it, how to apply for it, and the benefits of receiving one. What is a parsonage allowance A parsonage allowance, also known...
Par Yield Curve
What is a 'Par Yield Curve' A par yield curve is a graph of the yields on hypothetical Treasury securities with prices at par. On the par yield curve, the coupon rate will equal the yield-to-maturity of the security, which is why the Treasury bond will trade at par. Explaining 'Par Yield Curve' Deriving...