Education Glossary

Showing Terms 1 - 20 out of 26 found.
View All Financial Terms

Definitions Starting with "p"

« Previous1 | 2
Term Definition
Preemptive Right

A clause for select shareholders of a corporation that provides the right to maintain percentage ownership of a company through purchasing a proportionate amount of shares of any future shares issuance of the security.

Price/Earnings Ratio

A company valuation tool that measures current share price against per-share earnings. It's a good indicator for investor demand for the company's shares.

Profit Margin

A corporate evaluative formula that divides Net Income by revenue for a specified period.


A designated agent authorized to take legal action on behalf of another party. Often used by shareholders to transfer voting rights to a member of company management to represent the shareholder's interests at a shareholders' meeting.


A prevalent retracement in a trending market before continuing in the same direction.


A price chart pattern resembling a pole with a flag (pennant), the pattern identifies a strong trend and is characterized by increasing lower highs and higher lows.

Price Weighted Index

A stock index where each stock impacts the value of the index proportionate to it's price per share.

Point and Figure

A technical analysis charting technique that plots price movements without time as a parameter. Easily identifiable by vertical columns of Xs and Os. Xs represent rising prices while Os represent falling prices.

Pivot Point

A technical analysis indicator used to gauge overall market trend. Calculated through an average of the high, low and close for the previous trading day.


A type of option contract that provides the holder the right to to sell a specified amount of an underlying asset at a set price within a specific time period.

Preferred Stock

A type of stock ownership that provides a fixed dividend and has a higher hierarchy in the payment of dividend over common stockholders.

Positive Directional Indicator

An attribute of the Average Directional Index (ADX) that quantifies the occurrence of an uptrend.

Penny Stock

Any stock share trading below $5 per share.

Program Trading

Automated trades representing large blocks of securities executed by institutional traders via a computerized platform.

Profit Warning

Company announcement indicting that actual profits are likely to be lower than forecasted projections.

Pink Sheet

Daily publication by the National Quotation Bureau that lists Over-the-Counter stocks including the Dealers who trade them.

Parabolic SAR Indicator

Designed by Welles Wilder, this lagging indicator employs a "stop and reverse" strategy through the use of Trailing Stops and identifying a Trend Reversal.


Graphic formations of a financial instrument's price movements on a chart.


Legal document that provides details about a securities offering to the general public.

Par Value

Stated value or face value of a bond.

« Previous1 | 2