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Glossary

Par Value

Stated value or face value of a bond.

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.

Pattern

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

Pennant

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.

Penny Stock

Any stock share trading below $5 per share.

Pink Sheet

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

Pip

Unit of price for foreign currency — refers to digits added or subtracted from the fourth decimal place.

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.

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.

Portfolio

The totality of an investor’s holdings in stocks, bonds, futures, mutual funds and real estate.