Tag: risk

Calamity Call

What is 'Calamity Call' A call feature of a Collateralized Mortgage Obligation (CMO) designed primarily to reduce the issuer's reinvestment risk. If...

Call Risk

What is 'Call Risk' The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of...

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...

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...

Pension Fund

DefinitionA pension fund, also known as a superannuation fund in some countries, is any plan, fund, or scheme which provides retirement income. Pension Fund...

Passive Activity

What is 'Passive Activity' Passive activity is activity in which the taxpayer did not materially participate in during the tax year. Internal...

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...

Penny Stock

DefinitionPenny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share....

Parallel Loan

DefinitionA parallel loan is two loans taken out by two pairs of companies in different countries from local lenders with the aim of swapping...

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...