Paper Trade
What is 'Paper Trade' A paper trade refers to using simulated trading to practice buying and selling securities without actual money being involved. While a paper trade can be done by simply keeping track of hypothetical trading positions, it usually involves the use of a stock market simulator that has the look and feel of an actual...
Paper Money
DefinitionPaper Money is the second album by the American hard rock band Montrose. It was produced by Ted Templeman and is the band's final recording with original vocalist Sammy Hagar. It marks the arrival of new bass player Alan Fitzgerald, replacing original bassist Bill Church. Paper Money What is 'Paper Money' A country's official, paper currency that...
Private Mortgage Insurance
What is Private Mortgage Insurance Private mortgage insurance is insurance that protects a lender in the event that a borrower defaults on a conventional home loan. PMI is typically required when a borrower makes a down payment of less than 20% of the purchase price. The insurance protects the lender by reimbursing them for any losses that they may incur if...
Paper Millionaire
What is 'Paper Millionaire' An individual who has achieved a high net worth as a result of the large total market value of the assets he or she owns. This phenomenon usually occurs when investors buy marketable securities that are later bid up to much higher prices on the open market. While this creates large amounts of...
Parity Bond
What is 'Parity Bond' Two or more bond issues with equal rights to one another. In other words, a parity bond is an issued bond with equal rights to a claim as other bonds already issued. For example, unsecured bonds have equal rights in that coupons can be claimed without any one bond having priority over another....
Pass-Through Rate
What is the 'Pass-Through Rate' The pass-through rate is the rate on a securitized asset pool -- such as a mortgage-backed security (MBS) -- that is "passed-through" to investors once management fees and guarantee fees have been paid to the securitizing corporation. The pass-through rate (also known as the coupon rate for the MBS) is lower than...
Past Service
What is 'Past Service' Service to an employer that is recognized for the defined benefit pension plan purposes, but either occurred before the employee was a member in the plan, or before the plans inception. Employees have the option to purchase past service, by cash or by qualified retirement plan roll-over, to increase their years of service...
Paris Pair
What is 'Paris Pair' The nickname for the U.S. Dollar/French Franc currency pair prior to France's conversion to the Euro. Since the franc was replaced by the euro, there is no modern equivalent to the Paris Pair. Explaining 'Paris Pair' The franc was France's national currency until the euro was introduced in 1999. Euro...
Profit Margin
DefinitionProfit margin, net margin, net profit margin or net profit ratio is a measure of profitability. It is calculated by finding the net profit as a percentage of the revenue. Profit Margin The profit margin is a ratio which presents a measure of a business organization’s profitability in order to gauge its financial performance. It may also be referred...
Panic Buying
What is panic buying and why do people do it Panic buying is a phenomenon that occurs when consumers purchase large quantities of goods in response to fears about an impending shortage. This can often lead to panic and hoarding, as people compete for limited supplies. While panic buying may seem irrational, it can actually be motivated by a number...