Stock market terms starting with P

PAN Indian Market, Regulation & Taxation qualitative The Permanent Account Number, a ten-character identifier issued by the income tax department and mandatory for securities transactions. Test: the ten-character alphanumeric identifier is quoted and linked for every securities market transaction and tax filing

Panic Selling Market Psychology & Behavioural Finance qualitative Selling driven by fear during a sharp decline, without reference to value. Test: the sale is triggered by the size or speed of the price fall rather than by new information about the asset

Parabolic SAR Indicators & Oscillators ₹ A trailing stop-and-reverse indicator that plots dots which accelerate toward price as a move extends. SAR = Prior SAR + Acceleration Factor x (Extreme Point - Prior SAR), with the factor rising by a step each time a new extreme is made

Partial Fill Orders, Execution & Market Structure shares The execution of only part of an order's quantity, with the remainder either resting in the book or cancelled. Filled Quantity < Order Quantity, with the unfilled balance either resting or cancelled per the order's validity

Passive Investing Funds, ETFs & Index Investing qualitative An approach that seeks to match an index's return rather than to beat it, by holding the index's constituents. Test: security selection is determined by index rules rather than by judgement, and success is measured by tracking rather than by outperformance

Pay-In Orders, Execution & Market Structure qualitative The stage of settlement at which members deliver securities and funds owed to the clearing corporation. Test: on the settlement date, net obligations are transferred from members to the clearing corporation by the pay-in deadline

Pay-Out Orders, Execution & Market Structure qualitative The stage of settlement at which the clearing corporation distributes securities and funds to the members entitled to them. Test: after pay-in is complete, net entitlements are transferred from the clearing corporation to members and onward to clients

PEG Ratio Fundamental Analysis & Valuation ratio (x, times) The price-to-earnings ratio divided by the expected annual earnings growth rate, used to judge whether growth justifies the multiple. PEG = Price-to-Earnings Ratio / Expected Annual Earnings Growth Rate (in percent)

Pennant Technical Analysis & Chart Patterns qualitative A short converging consolidation following a sharp move, forming a small symmetrical triangle. Test: a steep prior move, followed by a brief consolidation whose upper and lower boundaries converge

Penny Stock Market Basics & Instruments qualitative An informal label for a very low-priced share, typically of a small company with thin trading and limited disclosure. Test: low absolute price per share combined with small market capitalisation and low daily turnover

Per Capita Income Economy, Macro & Market Cycles ₹ National income divided by population, used as a rough measure of average prosperity. Per Capita Income = National Income / Total Population

Perpetual Bond Bonds & Fixed Income ₹ A bond with no maturity date, paying interest indefinitely unless the issuer exercises a call option. Price = Annual Coupon / Required Yield, for a perpetual stream with no redemption

Physical Settlement Derivatives, Futures & Options qualitative Settlement of a derivative by actual delivery of the underlying security against payment, rather than by cash difference. Test: at expiry, an in-the-money contract obliges delivery of Lot Size units against payment of Strike x Lot Size

Piercing Pattern Technical Analysis & Chart Patterns qualitative A two-candle formation in which a rising candle opens below the prior falling candle's close and closes above its midpoint. Test: previous candle falls; current Open < previous Low; current Close > midpoint of previous body but below its Open

Piotroski F-Score Fundamental Analysis & Valuation ratio (x, times) A nine-point checklist of year-on-year improvements in profitability, leverage and efficiency, scoring financial strength from 0 to 9. F-Score = sum of nine binary tests across profitability (4), leverage and liquidity (3), and operating efficiency (2)

Pivot Point Technical Analysis & Chart Patterns ₹ A reference price computed from the previous period's high, low and close, with support and resistance levels derived from it. Pivot P = (High + Low + Close) / 3; R1 = 2P - Low; S1 = 2P - High; R2 = P + (High - Low); S2 = P - (High - Low)

Point and Figure Chart Technical Analysis & Chart Patterns ₹ A chart that plots columns of Xs and Os for price movement of a set size, ignoring time entirely. New X or O is added each time price moves one box size; a reversal requires a move of the reversal amount, typically three boxes

Policy Transmission Economy, Macro & Market Cycles % The process by which a change in the central bank's policy rate passes through to lending and deposit rates in the economy. Transmission = Change in Bank Lending Rate / Change in Policy Rate, over the period examined

Portfolio Risk & Portfolio Management ₹ The complete collection of investments held by an individual or institution, considered as one unit. Portfolio Return = Sum of (Weight of each Holding x Return of that Holding)

Portfolio Management Service Funds, ETFs & Index Investing ₹ A SEBI-registered service managing a separate portfolio of securities for a single client, with a high minimum investment. Test: securities are held in the client's own name or demat account and managed under a discretionary or non-discretionary agreement

Portfolio Overlap Funds, ETFs & Index Investing % The proportion of holdings, by weight, that two funds have in common. Overlap % = Sum over all common holdings of the minimum of the two funds' weights in that holding

Portfolio Turnover Ratio Funds, ETFs & Index Investing % The proportion of a fund's portfolio replaced over a year, measuring how actively it trades. Portfolio Turnover = Lesser of Total Purchases or Total Sales / Average Assets Under Management x 100

Position Sizing Risk & Portfolio Management shares Deciding how much capital to commit to a single position, based on the loss that would be acceptable if it went wrong. Position Size = (Account Value x Risk per Trade %) / Risk per Share

Positional Trading Market Basics & Instruments qualitative Holding a position for weeks to months, aiming to capture a sustained trend rather than a single swing. Test: holding period measured in weeks or months, with the exit governed by trend condition rather than by an intraday level

Terms starting with P