Datasets:
sohomghosh
/
FinRAD_Financial_Readability_Assessment_Dataset

Dataset card Data Studio Files Community
1
terms
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156
definitions
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15 values
assigned_readability
int64
0
1
flesch_reading_ease
float64
-301.79
121
flesch_kincaid_grade
float64
-3.5
55.6
smog_index
float64
0
26.5
coleman_liau_index
float64
-33.81
51.4
automated_readability_index
float64
-6.9
65
dale_chall_readability_score
float64
0.1
35.3
linsear_write_formula
float64
-0.5
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gunning_fog
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0.4
56
PER PRO
Abbreviated form of per procurationem, signifying an act by an AGENT who is authorized to deal on behalf of a PRINCIPAL.
palgrave
0
41.7
12.7
0
9.81
11.5
10.69
15.5
17.92
PERCENTAGE OF LOSS DEDUCTIBLE
In INSURANCE, a CONTRACT with a percentage-based DEDUCTIBLE that increases as the INSURED’s losses grow larger. Through this feature the insured preserves, or even increases, its RISK RETENTION.
palgrave
0
48.81
9.9
0
15.48
13.6
12.23
8.5
11.31
PERFORMANCE BENCHMARKING
The process of analyzing the finan- cial performance of an INVESTMENT PORTFOLIO against a predefinedBENCHMARK. Proper performance benchmarking requires selection of the correct benchmark INDEX and proper consideration of exogenous factors including COMMISSIONS and TAXES levied on the portfolio.
palgrave
0
17.84
15.6
0
20.48
19.4
12.7
16.25
19.08
PERFORMANCE BOND
A FINANCIAL GUARANTEE providing payment to a third party BENEFICIARY if the purchaser of the guarantee fails to per- form as contracted. Common performance bonds include SURETY BONDS and COMPLETION BONDS (purchased from INSURERS) and STANDBY LETTERS OF CREDIT (purchased from banks).
palgrave
0
33.24
13.8
0
15.2
16.2
12.2
15.5
16.97
PERIL
A cause of loss, and an exposure that individuals and institutions often seek to protect against through INSURANCE. See also HAZARD.
palgrave
0
52.36
8.6
0
11.34
8.9
7.92
6.25
11.82
PERIOD BILL
See TERM BILL.
palgrave
0
119.19
-2.7
0
-4.29
-1.2
0.15
0.5
1.2
PERIODIC COLLATERAL
A process where a FINANCIAL INSTITUTION extending CREDIT to a COUNTERPARTY takes a smaller amount of ini- tial COLLATERAL but revalues the credit exposure and collateral periodic- ally and makes necessary adjustments (i.e., calling for additional collateral if in deficit, returning excess collateral if in surplus). See also UPFRONT COLLATERAL.
palgrave
0
12.26
17.8
0
16.19
19
12.77
20
18.8
PERPETUAL DEBENTURE
In the United Kingdom, a DEBENTURE that is issued as an UNDATED SECURITY. See also IRREDEEMABLE SECURITY.
palgrave
0
37.47
10.1
0
10
7.5
8.7
5.25
10.46
PERPETUAL DEBT
A BOND that is issued without a stated final MATURITY. The DEBT acts as a PERPETUITY, paying INVESTORS regular COUPONS but never repaying the PRINCIPAL balance. See also CONSOL, IRREDEEMABLE SECURITY, PERPETUAL FLOATING RATE NOTE, UNDATED SECURITY.
palgrave
0
25.15
12.8
13.6
13.96
11.7
12.78
8.5
14.65
PERPETUAL PREFERRED STOCK
A form of CUMULATIVE PREFERRED STOCK with no fixed MATURITY date, OPTIONAL REDEMPTION that makes the securities callable at the ISSUER’S option, and a ranking in DEFAULT that is senior to COMMON STOCK and PARI PASSU with other PREFERRED STOCK. See also HYBRID CAPITAL SECURITY, TRUST PREFERRED STOCK.
palgrave
0
47.12
12.7
0
13
15.4
11.08
15.5
14.6
PERPETUAL SUCCESSION
A concept in corporate law that allows for the permanent and continuing existence of a CORPORATION, regardless of the departure or demise of founders or executives, or the sale of SHARES by ori- ginal or existing SHAREHOLDERS.
palgrave
0
25.46
18.9
0
12.49
21.3
12.73
28.5
25.61
PERPETUITY
An ASSET or financial CONTRACT that pays INVESTORS a stated CASH FLOW on a continuous basis but does not provide for PRINCIPAL repayment. The PRESENT VALUE of constant and growing perpetuities is given as:Constant:Growing:where CF is the stated cash flow, r is the DISCOUNT RATE, and g is the growth rate. See also ANNUITY.
palgrave
0
53.21
10.3
11.9
10.55
11.1
10.38
11.333333
11.64
PERSONAL CONSUMPTION
A component of GROSS DOMESTIC PRODUCT (and related GROSS NATIONAL PRODUCT) that includes DURABLE GOODS, NONDURABLE GOODS, and services.
palgrave
0
43.73
11.9
0
16.88
17.1
12.89
13.5
16.02
PETRODOLLARS
Dollar CASH FLOWS paid for oil to oil-producing nations, which are often redeposited (or recycled) through the Western banking system.
palgrave
0
42.72
12.3
0
14.62
15.7
10.16
13
14
PHANTOM STOCK
A corporate SECURITY that gives employees, executives, and DIRECTORS the RENT RIGHTS associated with the company’s COMMON STOCK (e.g., any CAPITAL GAINS, DIVIDENDS) without granting physical SHARES or CONTROL RIGHTS (e.g., PROXY voting). Also known asSHADOW STOCK.
palgrave
0
35.78
12.9
0
16.13
16.8
13.52
14.25
17.13
PHYSICAL DELIVERY
See PHYSICAL SETTLEMENT.
palgrave
0
9.21
12.7
0
15.03
14.6
9.05
2.5
14.53
PHYSICAL SETTLEMENT
A SETTLEMENT process where two parties to a TRADE or DERIVATIVE CONTRACT exchange cash for a physical ASSET (such as a COMMODITY or physical form SECURITY). Also known as PHYSICAL DELIVERY. See also CASH SETTLEMENT.
palgrave
0
42.68
10.2
13
10.71
8.8
8.28
7.833333
10.39
PHYSICALS
A COMMODITY or physical good that can be bought and sold, and which can be settled through PHYSICAL DELIVERY.
palgrave
0
60.65
9.5
0
9.86
10.6
7.9
13.5
13.92
PIG
An INVESTOR that, having earned PROFITS on certain INVESTMENTS, has unrealistic expectations about further profits and con- tinues to hold the positions.
palgrave
0
32.22
14.2
0
16.48
17.8
11.19
15
16.07
PIG ON PORK
See CROSS GUARANTEE.
palgrave
0
59.97
5.6
0
7.32
8.3
9.05
1.5
14.53
PIGGYBACKING
See COAT-TAILING.
palgrave
0
35.61
8.8
0
10
17.3
11.63
1
0.8
PIK SECURITY
See PAYMENT IN KIND SECURITY.
palgrave
0
49.48
7.6
0
6.12
4.6
7.04
2.5
10
PILLAR I
One of three “pillars” under the BASLE II framework, centered on the computation of minimum CAPITAL requirements for BANKS. Pillar I provides for greater precision in defining CREDIT RISK (under the INTERNAL RATINGS- BASED APPROACH, STANDARDIZED APPROACH) and OPERATIONAL RISK; MARKET RISK is covered under the BASLE MARKET RISK AMENDMENT. See also I, II.
palgrave
0
44.75
11.5
12.5
13.8
13.9
11.55
11.666667
12.39
PILLAR III
One of three “pillars” under the BASLE II framework, based on ensuring improved market discipline through detailed public disclosures. A participating BANK is required to provide additional qualitative comments on its RISK MANAGEMENT policies, processes and methodologies, and quantita- tive details on its key CREDIT RISK, MARKET RISK, and OPERATIONAL RISK exposures. See also PILLAR I, PILLAR II.
palgrave
0
34.97
13.2
14.6
15.84
15.9
12.22
13.666667
16
PIN RISK
The RISK of loss that arises when a very large OPTION position (or many small ones) trades near the STRIKE PRICE as EXPIRY approaches. A small move above/below the strike price can dramatically change the HEDGE requirement and potentially induce large losses (or gains).
palgrave
0
57.61
10.7
0
11.72
13.9
10.47
14
13.35
PINGING
The act of sending in small ORDERS into a DARK POOL as a way of discovering whether a large BID or OFFER exists in a particular STOCK. If the small orders are executed the pinging is said to be successful and can lead to GAMING of the pool.
palgrave
0
64.04
10.3
0
6.1
9.5
8.12
14
12.93
PINK SHEETS
A mechanism used to quote OVER-THE-COUNTER SECURITIES, including PENNY STOCKS. Pink sheets were previously printed and distributed on pink paper, but are now accessible electronically.
palgrave
0
24.95
12.9
0
17.56
15
11.2
10.25
16.2
PINNING THE STRIKE
A tendency for the price of a COMMON STOCK with heavily traded OPTIONS to close near the STRIKE PRICE of the most actively traded PUT OPTIONS or CALL OPTIONS.
palgrave
0
58.96
12.2
0
9.12
14.2
8.89
17.5
15.74
PIP
The fifth decimal point in a FOREIGN EXCHANGE quotation, e.g., 0.00001. See also POINT.
palgrave
0
72.83
4.8
0
7.84
7
11.88
3.5
8.51
PIPE
See PRIVATE INVESTMENT IN PUBLIC EQUITY.
palgrave
0
31.55
10.4
0
12.05
9
11.83
4
15.73
PIPELINE
Future deal flow being arranged by BANKS, INVESTMENT BANKS, and SECURITIES FIRMS on behalf of clients. The pipeline includes future NEW ISSUES and CORPORATE FINANCE transactions, and serves as a measure of strength/weakness in the financial and corporate sectors. Also known as CALENDAR, VISIBLE SUPPLY. See also SHADOW CALENDAR.
palgrave
0
50.53
9.3
12.2
14.02
11.7
10.69
7.625
9.82
PIPETTE
One tenth of a PIP.
palgrave
0
117.16
-1.9
0
-5.49
-4.9
10.2
1.5
2
PIT
See TRADING .
palgrave
0
35.61
8.8
0
-1.61
5.5
11.63
0.5
0.8
PLACED BUSINESS
An INSURANCE POLICY that has been completed and delivered to the INSURED, and where the INSURER has received itsPREMIUM.
palgrave
0
43.73
11.9
0
13.23
13.4
11.23
15.5
20.23
PLACEMENT
(1) The distribution of new SHARES of COMMON STOCK, either via an INITIAL PUBLIC OFFERING or a RIGHTS ISSUE. (2) The first stage in the MONEY LAUNDERING process, in which cash derived from illegal sources is deposited in BANKS or other FINANCIAL INSTITUTIONS or money broking operations. Once deposited, the cash is used in the LAYERING and INTEGRATION stages.
palgrave
0
41.53
14.8
0
12.02
17.4
11.52
20.25
18.58
PLANNED ECONOMY
See COMMAND ECONOMY.
palgrave
0
34.59
9.2
0
7.32
8.3
14.31
1.5
14.53
PLC
See PUBLIC LIMITED COMPANY.
palgrave
0
8.2
13.1
0
10.15
8.8
7.78
3
11.6
PLEDGE
The act of assigning an ASSET to a LENDER to support a BORROW- ING. The BORROWER retains ownership, but not possession, of the asset unless a DEFAULT occurs, at which point the lender takes legal ownership and can liquidate the asset to repay the loan. See also HYPOTHECATION.
palgrave
0
55.24
9.5
11.9
9.28
9
9.36
10.333333
11.4
PLOWBACK RATIO
The amount of CAPITAL a firm reinvests in its opera- tions, such as EARNINGS that are retained and reinvested rather than paid to SHAREHOLDERS in the form of DIVIDENDS. The formula is given as:PBR = 1 – Payoutwhere Payout is the PAYOUT RATIO.
palgrave
0
58.62
10.3
0
9.52
11.5
10.69
13.25
12.21
PLUS TICK
Sale of a SECURITY at a price that is higher than the prior transac- tion, generally indicated through the display of a “+” next to the screen or tape price. A SHORT SALE can be initiated on a plus tick. Also known as UPTICK See also MINUS TICK, ZERO , ZERO MINUS TICK.
palgrave
0
70.84
7.7
9.7
5.74
6.9
8.44
10.166667
10
PO STRIP
See PRINCIPAL-ONLY STRIP.
palgrave
0
34.59
9.2
0
15.03
16.2
9.05
1.5
14.53
POINT
The fourth decimal point in a FOREIGN EXCHANGE quota- tion, e.g., 0.0001. See also PIP.
palgrave
0
80.78
3.9
0
5.47
5.3
13.48
3.25
5.67
POINT AND FIGURE CHART
A TECHNICAL ANALYSIS chart that depicts upward and downward moves in a SECURITY or market but ignores time dimensions. A typical chart is comprised of Xs to depict upward moves and Os for downward moves. Continuous up or down moves are reflected in the same column for each occurrence, but when the trend shifts (e.g., to a new down or up) a new column is started. The chart that results is intended to reveal direc- tional momentum.
palgrave
0
60.35
9.6
12.2
8.76
10
10.13
12.125
12.91
POINT BARRIER OPTION
A BARRIER OPTION with a BARRIER that is only in effect at a single point in time, often MATURITY, rather than the entire life of the transaction. Also known as EUROPEAN BARRIER OPTION. See alsoPARTIAL BARRIER OPTION.
palgrave
0
50.53
9.3
12.5
9.27
7.6
7.66
7.833333
10.33
POISON PILL
A general class of ANTITAKEOVER DEFENSES designed to make a TARGET’s COMMON STOCK look less attractive to a potential acquirer planning a TAKEOVER, often through excessive DILUTION. See alsoCHEWABLE PILL, FLIP IN PILL, FLIP OVER PILL.
palgrave
0
53.21
10.3
0
13.69
13.6
10.23
13.5
16.09
POLICY CAP
The maximum amount payable by an INSURER to an INSURED, or a REINSURER to a CEDING INSURER, under an INSURANCE or REINSURANCE CONTRACT. Also known as AGGREGATE LIMIT, CAP,EXHAUSTION POINT.
palgrave
0
47.79
10.3
0
11.71
11
10.7
11.5
15.33
POLITICAL RISK INSURANCE
A form of INSURANCE that provides the INSURED with coverage against losses arising from various SOVEREIGN RISKS, including political disruption, EXPROPRIATION, NATIONALIZATION, CONTRACT repudiation, CAPITAL controls, and, in some instances, acts of terrorism. See also WRAPAROUND INSURANCE.
palgrave
0
10.4
16.4
0
20.94
20.1
13.09
15.75
19.29
POLL TAX
In the United Kingdom and continental Europe, a uniform TAX that can be levied on each citizen of a particular city, state, or other jurisdic- tion, according to local needs and rules.
palgrave
0
39
15.8
0
9.93
17.1
10.16
21
17.8
PONZI SCHEME
A FRAUD perpetrated on unwitting INVESTORS, named after Charles Ponzi who operated a large scheme in the early twentieth cen- tury. Ponzi schemes can take various forms, but often involve some form of pyramiding structure, where new client funds are used to repay funds placed by original clients; the scheme can only work as long as new funds continue to flow in.
palgrave
0
56.93
13
0
10.98
17.1
11.29
19.5
17.56
POOL
(1) A SYNDICATE of INSURERS or REINSURERS organized to under- write a LINE of RISK. Each pool member shares in PREMIUMS, losses, and LOSS ADJUSTMENT EXPENSES. (2) A group of ASSETS combined into a PORTFOLIO for SECURITIZATION or COLLATERAL management purposes. (1) See alsoREINSURANCE POOL.
palgrave
0
31.72
14.4
0
13.06
15.6
11.77
17.75
20.56
POOLING
(1) The process of combining DEBIT and CREDIT balances in a cor- porate customer’s disparate BANK ACCOUNTS to derive a net balance; interest is credited on a positive balance, and debited on a negative balance. (2) See RISK . (1) Also known as BALANCE CONCENTRATION, NOTIONAL .
palgrave
0
17.34
22
0
11.68
25.2
13.59
31.5
25.11
POOP AND SCOOP
An illegal practice where a group of INVESTORS circulates false negative news about a company in order to drive down the price of its COMMON STOCK; once the price has been pushed down, the investors purchase shares and wait for a rebound. This type of scheme is typically tar- geted at small, thinly traded stocks. See also PUMP AND DUMP.
palgrave
0
68.1
8.7
10.5
8.99
10.5
9.1
11.666667
10.67
PORCUPINE PROVISION
See ANTITAKEOVER DEFENSE.
palgrave
0
34.59
9.2
0
16.95
16.2
9.05
1.5
14.53
PORTABLE PENSION
In the United Kingdom, an employee PENSION account that can be moved between employers as the employee changes jobs.
palgrave
0
52.19
10.7
0
12.01
12.4
9.57
12.5
11.81
PORTFOLIO
A group of ASSETS that is managed jointly, often to provide proper DIVERSIFICATION, RISK MANAGEMENT, or INVESTMENT opportun- ities that cannot be obtained by holding individual assets. See also DIVERSIFICATION, RISK, THEORY.
palgrave
0
12.94
15.4
0
15.95
15
11.34
11.5
13.9
PORTFOLIO CONSTRUCTION
The general process used by HEDGE FUND, MUTUAL FUND, and INVESTMENT managers to create a PORTFOLIO of investments with particular RISK and RETURN characteristics. The construc- tion process, which may be led by a fund’s CHIEF INVESTMENT OFFICER or investment committee, takes account of the fund’s specific mandate, its ability to take risk, and its return targets.
palgrave
0
42.55
14.4
0
13.52
18.3
10.87
20.75
17.72
PORTFOLIO DIVERSIFICATION
The practice of combining SECUR- ITIES that are not correlated with one another in order to diffuse RISK. See also DIVERSIFICATION, DIVERSIFIABLE RISK, NONDIVERSIFIABLE RISK,PORTFOLIO THEORY.
palgrave
0
7.52
15.4
0
17.5
15.1
11.57
10.5
15.97
PORTFOLIO INSURANCE
A technique that allows participants to bene- fit from a rising market by increasing exposure to COMMON STOCKS and protecting against a declining market by decreasing exposure. The primary downside RISK MANAGEMENT application is centered on the sale of INDEX FUTURES to protect an INVESTMENT PORTFOLIO against a fall in prices.
palgrave
0
37.13
14.4
0
14.16
16.9
11.71
18.75
18.83
PORTFOLIO MANAGER
A financial professional that invests the CAPITAL of investors in a range of SECURITIES. The manager may choose an active or pas- sive strategy, and may specialize in particular ASSET classes, such as EQUITIES, FIXED INCOME, EMERGING MARKETS, and so forth. Also known as ASSET MANAGER, INVESTMENT MANAGER.
palgrave
0
38.32
11.9
14.6
12.41
11.9
10.68
12
13.07
PORTFOLIO PUMPING
A quarter-end or year-end practice where INVESTMENT MANAGERS purchase additional amounts of COMMON STOCK to supplement existing holdings in order to push up prices and improve end- of-period performance statistics. See also WINDOW DRESSING.
palgrave
0
37.3
12.3
0
16.7
15.8
11.45
12
15.04
PORTFOLIO REINSURANCE
A REINSURANCE CONTRACT granted over a CEDING INSURER’s total PORTFOLIO of RISKS; the contract effectivelyprovides the insurer with macro protection against all LINES of INSURANCE business written.
palgrave
0
18.69
17.4
0
19.09
21.7
13.16
20.5
21.17
PORTFOLIO RETURN
The income generated by a group of ASSETS over a defined horizon. Income may be derived from DIVIDENDS, YIELD, and/or CAPITAL GAINS, depending on the characteristics of the SECURITIES. The total RETURN of the portfolio is equal to the sum of the returns on each indi- vidual asset, and is given by:where Rp is the return of the portfolio, Rx is the return of asset x in the port- folio, wx is the weight of asset x in the portfolio, Z is the number of assets in the portfolio. See also EXPECTED PORTFOLIO RETURN.s 2 ( Rp ) = s 2 ( R1 ) + s 2 ( R2 ) + 2w1w2cov( R1 , R2 )where Rp is the return of the portfolio, R1 is the return of asset 1, R2 is the return of asset 2, σ2(R1) is the variance of the return of asset 1, σ2 (R2) is the variance of the return of asset 2, w1 is the weight of asset 1 in the portfolio, w2 is the weight of asset 2 in the portfolio, cov(R1, R2) is the covariance between assets 1 and 2.The generalized formula for a portfolio containing Z assets is given by:s 2 ( Rp ) = ∑ ∑ wg whcov( Rg , Rh )Note that the terms for which h = g results in the variance of the Z assets, while the terms for which h ≠ g yields all covariances among the Z assets. See alsoCORRELATION, CORRELATION RISK.
palgrave
0
32.84
20.2
15.6
6.4
21.4
9.68
15.75
21.15
PORTFOLIO THEORY
The practice of analyzing and managing INVEST- MENTS on a PORTFOLIO, rather than SECURITY-specific, basis. The process is based on measuring portfolio ASSET RISKS and RETURNS (including those that are characterized as DIVERSIFIABLE and NONDIVERSIFIABLE RISKS), creating investment allocation strategies, and optimizing portfolio components. Theultimate goal is to create a diversified portfolio of investments that maximizes return for a given level of risk.
palgrave
0
16.32
16.2
18.2
18.16
18.7
12.45
17.5
20.46
POSITION TRADING
A speculative TRADING strategy based on holding a LONG POSITION or SHORT POSITION for several weeks or months. Position trading, though relatively short-term in nature, has a longer horizon thanMOMENTUM TRADING.
palgrave
0
38.82
11.7
0
15.37
13.8
11.03
11.75
12.65
POSITIVE BASIS
A market state where the price of the cash or SPOT MARKET SECURITY is greater than the price of the underlying FUTURES contract. See also BASIS RISK, NEGATIVE BASIS.
palgrave
0
65.22
7.8
0
8.92
8.1
8.71
7.75
9.94
POSITIVE CARRY
Any transaction or trade where the RETURNS generated by an ASSET are greater than the financing and storage charges required to support the asset. See also CARRY, CARRY TRADE, NEGATIVE CARRY.
palgrave
0
55.74
9.3
0
11.77
10.8
10.01
8.75
11.36
POSITIVE CONVEXITY
A characteristic of certain financial ASSETS where gains are greater, and losses are smaller, than those of LINEAR INSTRUMENTS or those with NEGATIVE CONVEXITY. LONG OPTIONS, and BONDS with no OPTIONALITY feature positive convexity. See also NEGATIVE CONVEXITY, NONLINEAR INSTRUMENT, POSITIVE GAMMA.
palgrave
0
23.43
13.5
15
16.64
14.5
11.47
11.333333
14.17
POSITIVE GAP
A general measure of a company’s exposure to INTEREST RATE REPRICING RISK. A positive gap arises when RATE SENSITIVE ASSETS reprice faster than LIABILITIES (e.g., have shorter DURATION), meaning a company will experience a loss if rates fall and a gain if rates rise. Also known as ASSET SENSITIVE. See also GAP, GAPPING, NEGATIVE GAP.
palgrave
0
49.01
9.9
13
10.49
9.5
10.92
8.875
12.07
POSITIVE OBLIGATION
See AFFIRMATIVE OBLIGATION
palgrave
0
-24.64
17.4
0
20.83
17.8
14.31
2.5
27.87
POSITIVE WORKING CAPITAL
A financial state where a company’s CURRENT ASSETS exceed its CURRENT LIABILITIES. Positive working capital indicates the availability of sufficient LIQUIDITY to cover OBLIGATIONS com- ing due. See also NEGATIVE WORKING CAPITAL.
palgrave
0
18.31
13.4
14.6
16.51
12.9
12.06
8.333333
16.78
POSITIVE YIELD CURVE
A TERM STRUCTURE where short-term INTEREST RATES are lower than long-term interest rates. The positive yield curve is the most common state of the term structure in financial systems operating under normal market conditions (i.e., low INFLATION, stable eco- nomic growth). Also known as UPWARD SLOPING YIELD CURVE. See alsoFLAT YIELD CURVE, KINKED YIELD CURVE, NEGATIVE YIELD CURVE, YIELD CURVE.
palgrave
0
64.71
8
11.2
13.04
12.4
9.91
8.5
10.67
POST-FUNDED POLICY
See RETROSPECTIVE FINITE POLICY.
palgrave
0
-8.73
15.5
0
17.4
14.7
15.68
3
21.6
POT
A portion of a NEW ISSUE that is retained by the LEAD MANAGER to facilitate large block sales to INSTITUTIONAL INVESTORS.
palgrave
0
50.16
11.5
0
10.33
11.7
9.94
13.5
12.21
POTENTIAL EXPOSURE
A measure of the current and future CREDIT RISK exposure of a financial CONTRACT with uncertain or variable value, such as a DERIVATIVE, REPURCHASE AGREEMENT, or LOAN COMMITMENT. It is often calculated as the sum of ACTUAL EXPOSURE (MARK-TO-MARKET value) and FRACTIONAL EXPOSURE (an estimate of future value obtained through statistical or SIMULATION-based models). Also known as RISK EQUIVALENT EXPOSURE.
palgrave
0
25.8
14.6
16.7
14.91
15.7
10.68
15.666667
16.67
POTENTIAL MARKET RISK
See FRACTIONAL EXPOSURE.
palgrave
0
9.21
12.7
0
15.03
14.6
14.31
2.5
27.87
POWER BARRIER OPTION
An OVER-THE-COUNTER COMPLEX OPTION with an exponential PAYOFF that is either created (i.e., knocks-in) or extin- guished (i.e., knocks-out) when a particular BARRIER is breached. See alsoPOWER OPTION, BARRIER OPTION.
palgrave
0
39.33
11.5
0
14.78
15.4
11.22
11
12.67
POWER-OF-ATTORNEY
A legal authorization given by one party (the PRINCIPAL) to another party (the ATTORNEY-IN-FACT) to deal in specified, and binding, transactions on its behalf.
palgrave
0
21.74
16.2
0
13.7
17.3
10.09
18
17.93
PPI
See PRODUCER PRICE INDEX.
palgrave
0
50.5
7.2
0
7.25
6.5
11.73
2
11.6
PREANNOUNCEMENT
A process used by a PUBLIC COMPANY where it releases financial or corporate information (particularly forecast earnings) to the marketplace ahead of a formally scheduled release date to allow the market to absorb the information and dampen the potential impact on its STOCK PRICE.
palgrave
0
9.9
22.8
0
14.46
26
11.56
32
24.87
PREDATORY LENDING
Unethical, and sometimes illegal, LENDING prac- tices followed by certain FINANCIAL INSTITUTIONS that seek to take advan- tage of RETAIL CLIENTS through excessive fees and charges or through unfavorable and prejudicial terms.
palgrave
0
22.08
18.1
0
17.59
23.1
14.11
23
21.55
PREEMPTION RIGHT
See PREEMPTIVE RIGHT.
palgrave
0
59.97
5.6
0
9.23
9.9
9.05
1.5
14.53
PREEMPTIVE RIGHT
The RIGHT of existing SHAREHOLDERS to invest in a NEW ISSUE of COMMON STOCK before it is offered to the market at large; only when shareholders have waived or transferred this right can new shares be offered to new shareholders. Where preemptive rights do not specifically exist, shareholders may still be protected through SUBSCRIPTION WARRANTS. Also known as ANTIDILUTION PROVISION, PREEMPTION RIGHT, SUBSCRIPTION PRIVILEGE. See also RIGHTS ISSUE.
palgrave
0
54.22
9.9
13.8
14.32
13.5
9.12
12
12.68
PREFERENCE
The transfer of valuable property within 90 days of a com- pany’s BANKRUPTCY filing; preference payments made by the company to third parties that prejudice or impair the position of CREDITORS, or which favor one creditor over others, may be subject to CLAWBACK by the TRUSTEE or RECEIVER. Also known as VOIDABLE . See also PERIOD.
palgrave
0
44.44
11.6
13.6
11.08
11.4
11.15
12.666667
13.87
PREFERENCE OPTION
See CHOOSER OPTION.
palgrave
0
59.97
5.6
0
5.35
6.8
14.31
0.5
1.2
PREFERENCE PERIOD
A 90-day period preceding a company’s BANKRUPTCY filing. See also PREFERENCE.
palgrave
0
15.13
12.5
0
12.63
10
13.96
4.25
20.38
PREFERENCE SHARE
In the United Kingdom, PREFERRED STOCK.
palgrave
0
73.85
4.5
0
10.08
8.3
6.57
2
2.4
PREFERENTIAL CREDITOR
In the United Kingdom, a PREFERRED CREDITOR.
palgrave
0
55.91
7.2
0
9.87
7.6
8.5
3.5
8.51
PREFERENTIAL DEBT
In the United Kingdom, DEBT that receives preferred repayment status in the event of BANKRUPTCY, accorded to PREFERENTIAL CREDITORS.
palgrave
0
35.27
13.1
0
16.59
16.3
12.89
14.5
18.13
PREFERRED CREDITOR
A CREDITOR that is repaid after holders of SECURED DEBT, but before unsecured creditors, typically defined to include PENSION TRUSTEES and employees owed salary or other compensation. Also known as PREFERENTIAL CREDITOR.
palgrave
0
29.86
13.1
0
15.95
14.4
12.82
12
15.15
PREFERRED RISK
An INSURED with a lower PROBABILITY of generating a loss and CLAIM than a standard applicant; INSURERS attempt to iden- tify such RISKS for inclusion in their PORTFOLIOS in order to maximize UNDERWRITING income and minimize SETTLEMENTS.
palgrave
0
17
20.1
0
14.17
22.6
13.15
28.5
25.61
PREMARKET
The period before the official opening of TRADING on a spe- cific EXCHANGE or marketplace. Trading activity may occur in the premar- ket period through ELECTRONIC COMMUNICATIONS NETWORKS or otherALTERNATIVE TRADING SYSTEMS.
palgrave
0
21.4
14.3
0
16.53
14.8
12.33
12
15.15
PREMIUM BOND
A BOND that trades at a PREMIUM to its PAR VALUE. See also DISCOUNT BOND, PAR BOND.
palgrave
0
88.23
3.1
0
2.46
1.4
8.7
3.75
5.75
PREMIUM CAPACITY
The ability for an INSURER or REINSURER to write a large volume of POLICIES on the same LINE or RISK.
palgrave
0
68.1
8.7
0
6.21
7.9
9.37
13
14
PREMIUM CURRENCY
A CURRENCY that trades at a higher value than another currency in the FORWARD market. See also DISCOUNT CURRENCY.
palgrave
0
53.37
8.2
0
9.31
6.9
7.43
5.75
5.91
PREMIUM LOADING
The MARGIN an INSURER requires in order to cover overhead expenses (EXPENSE LOADING) and generate an appropriate PROFIT; premium loading is one of two components, along with PURE PREMIUM, used to determine FAIR PREMIUM.
palgrave
0
20.05
18.9
0
13.99
21.3
10.9
26
21.84
PREMIUM OVER BOND VALUE
The value ascribed to the EQUITY charac- teristics of a CONVERTIBLE BOND, or the difference between the MARKET VALUE of a convertible and an equivalent STRAIGHT BOND without the EMBEDDED OPTION. In general, the higher the CONVERSION PRICE, the greater the premium over bond value. Also known as PREMIUM.
palgrave
0
46.47
10.8
14.1
11.77
11.2
8.63
11.833333
12.23
PREMIUM RAID
An attempt by a RAIDER or acquiring company to quickly purchase a block of a TARGET’s COMMON STOCK by offering SHAREHOLDERS a significant PREMIUM to the prevailing stock price. See also DAWN RAID,SATURDAY NIGHT SPECIAL.
palgrave
0
45.25
11.3
0
12.58
12.2
10.37
12.75
13.86
PREMIUM SWAP
An OVER-THE-COUNTER NONPAR SWAP where the receiver of FIXED RATES grants an upfront payment to the FLOATING RATE payer in exchange for a higher ongoing fixed rate inflow. See also DISCOUNT SWAP.
palgrave
0
63.7
8.4
0
11.25
10.5
10.84
8.5
8.9
PREMIUM TAX
A TAX payable by an INSURER to a state or jurisdiction based on the amount of PREMIUMS earned from INSURANCE activities. Premium taxes are generally included in EXPENSE LOADING.
palgrave
0
39.84
11.3
0
11.53
10
11.98
11.25
16.83
PREMIUMS IN FORCE
A measure of an INSURER’s UNDERWRITING busi- ness, measured as PREMIUM earned on all INSURANCE policies that have not lapsed or have not been cancelled.
palgrave
0
54.56
11.9
0
12.02
15.2
11.82
16.5
16.4