Glossary beginning with P

P

Par Value

See Face Value



Portfolio

Holdings of securities by an individual or institution. A portfolio may include various types of securities representing different companies and industry sectors.

TMX Group

Preferred Stock (Share)

A class of share capital that entitles the owner to a fixed dividend ahead of the issuer's common shares and to a stated value per share in the event of liquidation. It usually does not have voting rights, unless a stated number of dividends have been omitted.

TMX Group

Price Earnings Ratio (PER)

The number of times the price covers the earnings per security 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. P/E ratio = Price per Share/Earnings per share.

Australian Securities Exchange

Primary market

The primary market is the environment in which securities are initially offered to the public. Private and public entities can issue various types of securities such as shares and bonds.

SIX Swiss Exchange

Prospectus

Document informing investors about an offering of securities by a listed company (IPO, capital increase, etc.) or a collective investment scheme. Investment scheme prospectuses, which are given to investors before they subscribe, provide detailed information about the risks to which the scheme is exposed. They also contain additional information about the terms and conditions of the product and the way it operates. It is important to read the prospectus carefully in order to analyse the proposed investment.

NYSE Euronext

Proxy

Written authorisation given by a shareholder to another person to vote on his behalf at a shareholders’ meeting.

Singapore Exchange

Put Option

A Put Option is a standardized tradable contract that gives the owner the right to sell a particular underlying asset at a specified date in the future at a pre-determined price. See also Option,  Call Option and Option Premium.

WFE