P/E
price/earnings ratio
Paif
ABF Pan Asia Bond Index Fund
PASLA
Pan Asian Securities Lending Association
PBC
People’s Bank of China (PBC) is the central bank in mainland China.
PCS
Provisional Clearing Statement
PECC
Pacific Economic Cooperation Council
PIN
Personal identification number
PIOB
Public Interest Oversight Board
PMNC
Panel Member Nomination Committee
PNS
Proprietary Network System
Portfolio
The collection of different investment instruments owned by one individual or institution. A portfolio can consist of any combination of stocks, bonds, derivatives and such.
POSIT
Portfolio System for Institutional Traders【Australia】
PPP
Purchasing power parity
Preferred Stock
Shares that rank before ordinary shares in the event of liquidation of the issuing company and that usually receive a fixed rate of return. A type of stock that pays a fixed dividend regardless of corporate earnings, and which has priority over common stock in the payment of dividends. However, it carries no voting rights, and should earnings rise significantly the preferred holder is stuck with the same fixed dividend while common holders collect more. The fixed income stream of preferred stock makes it similar in many ways to bonds.
Premium
For bonds and preferred stock, the premium is the amount by which the price exceeds the face, or par, value. For options markets, the premium is synonymous with the option’s price. The amount payable by the taker to the writer for entering the option. It is determined through the trading process and representing current market value.
Price-earnings ratio
Shows the number of times the price covers the earnings per share over a twelve month period. Investors commonly use this ratio to measure the attractiveness of particular shares and to compare shares in one company with those in another. A popular measure for comparing stocks selling at different prices in order to single out over or undervalued issues. The P/E ratio is simply the price per share divided by the company’s earnings per share. However, P/E is not always an accurate guide to a stock’s quality. Some people tend to think that a stock is inflated and drastically overvalued if its price is many many times its earnings. Yet that same stock may be quite accurately valued to reflect the company’s rapid growth and potential for high future earnings. When comparing P/Es it is therefore important to choose stocks in the same industry which are likely to face the same earnings prospects.
PRiME
Portfolio Risk Margining System of HKEx
Profit and loss statement
The statement of revenues, expenses, gains and losses showing the results of an entity’s operations in a period. Also called income statement, profit and loss account or revenue statement. Contrast balance sheet.
Program Trade
Program trading is defined as a wide range of portfolio trading strategies involving the purchase or sale of 15 or more stocks having a total market value of $1 million or more. One example is index arbitrage. Index arbitrage is defined as the purchase or sale of a basket of stocks in conjunction with the sale or purchase of a derivative product, such as index futures, in order to profit from the price difference between the basket and the derivative product. Other examples of program trading strategies are liquidation of facilitations, liquidation of EFP stock positions, and portfolio management, which includes portfolio realignment and portfolio liquidations. The NYSE’s program trading statistics are aimed at assessing the impact of these transactions on the normal functioning of the market. Daily program trading activity is calculated as the sum of shares bought, sold, and sold short in program trades. The total of these shares divided by total reported volume then provides a percentage which illustrates the relative importance of program trading during the period in question. This method is not the only way to measure program trading. One alternative would be to examine buy programs as a percentage of total purchases; another would be to examine sell programs as percentage of total sales. A third alternative is to calculate program purchases and sales as a percentage of total purchases and sales or twice total volume (TTV).
Prospectus
The document issued by a company or fund setting out the terms of its public equity issue or debt raising.
PSE
Pacific Stock Exchange
PSS
Participant Supplied System
Public shares
Tradable shares floated to the public.
Put option
A contract giving the taker the right to sell a fixed number of shares at a fixed price on or before the expiry date.
PvP
Payment vs payment