Stock market terms starting with P

Post-Closing Session Orders, Execution & Market Structure qualitative A short window after the main session in which orders execute at the day's official closing price rather than at a negotiated one. Test: all trades in the window execute at the previously determined closing price, with no price discovery

Pre-Open Session Orders, Execution & Market Structure qualitative The window before continuous trading begins in which orders are collected and matched in a call auction to set the opening price. Test: orders may be entered and modified during the collection window but execute only at the single auction price

Preference Share Market Basics & Instruments ₹ A share that receives a fixed dividend ahead of equity shares and ranks ahead of them in a winding-up, usually in exchange for giving up voting rights. Annual preference dividend = Face Value x Coupon Rate x Number of Preference Shares

Preferential Allotment Corporate Actions, Dividends & Governance qualitative An issue of shares to a selected group of investors rather than to all shareholders or the public. Test: shares are issued to identified persons under a special resolution, at a price not below the floor set by SEBI's pricing formula

Present Bias Market Psychology & Behavioural Finance qualitative The tendency to overvalue immediate rewards relative to larger rewards available later. Test: a smaller immediate reward is preferred to a larger delayed one, at a discount rate far above the market rate

Previous Close Market Basics & Instruments ₹ The official closing price of the prior trading session, used as the reference point for the current day's change and circuit limits. Day's Change % = (Current Price - Previous Close) / Previous Close x 100

Price Action Technical Analysis & Chart Patterns qualitative The analysis of raw price movement itself, without indicators derived from it. Test: the reading uses only the sequence of highs, lows, opens and closes, with no calculated overlay

Price Band Orders, Execution & Market Structure % The maximum percentage a security may move from its previous close in a session before orders outside the range are rejected. Upper Band = Previous Close x (1 + Band %); Lower Band = Previous Close x (1 - Band %)

Price Discovery Orders, Execution & Market Structure qualitative The process by which the interaction of buy and sell orders produces a price that reflects the market's aggregate view. Test: price emerges from competing orders rather than being set administratively or by a single participant

Price Oscillator Indicators & Oscillators % The difference between two moving averages of price, expressed either in absolute terms or as a percentage. Percentage Price Oscillator = (Short-Period MA - Long-Period MA) / Long-Period MA x 100

Price-Sensitive Information Corporate Actions, Dividends & Governance qualitative Information about a company that, if published, would be likely to materially affect its share price. Test: a reasonable investor would consider the information relevant to a decision to buy, hold or sell the security

Price-Time Priority Orders, Execution & Market Structure qualitative The rule by which an exchange ranks orders for matching: better prices first, and among equal prices, whichever arrived earlier. Rank = better price first; among equal prices, earlier timestamp first

Price-to-Book Ratio Fundamental Analysis & Valuation ratio (x, times) The market price of a share divided by its book value per share. P/B = Market Price per Share / Book Value per Share

Price-to-Cash-Flow Ratio Fundamental Analysis & Valuation ratio (x, times) Market capitalisation divided by operating cash flow, valuing the company against cash generated rather than accounting profit. P/CF = Market Capitalisation / Operating Cash Flow

Price-to-Earnings Ratio Fundamental Analysis & Valuation ratio (x, times) The price of one share divided by the earnings attributable to it, showing how many rupees are paid per rupee of annual profit. P/E = Market Price per Share / Earnings per Share

Price-to-Sales Ratio Fundamental Analysis & Valuation ratio (x, times) Market capitalisation divided by annual revenue, showing how much is paid per rupee of sales. P/S = Market Capitalisation / Annual Revenue

Pricing Power Fundamental Analysis & Valuation qualitative The ability to raise prices without losing enough volume to reduce profit. Test: gross margin is stable or rising through a period of input-cost inflation, with volumes broadly maintained

Primary Dealer Bonds & Fixed Income qualitative An institution authorised by the Reserve Bank to underwrite and make markets in government securities. Test: the entity holds a Reserve Bank authorisation, bids in primary auctions and quotes two-way prices in the secondary market

Primary Market Market Basics & Instruments qualitative The market in which securities are created and sold by the issuer for the first time, with the proceeds going to the issuer. Test: does the money paid by the buyer reach the issuing company or government? If yes, the transaction is primary

Principal Bonds & Fixed Income ₹ The face amount a bond issuer borrows and must repay at maturity, on which interest is calculated. Coupon Payment = Principal x Coupon Rate / Number of Payments per Year

Probability Neglect Market Psychology & Behavioural Finance qualitative Focusing on the magnitude of a possible outcome while disregarding how likely it is. Test: the decision responds to the size of a payoff or loss but is insensitive to changes in its probability

Profit and Loss Statement Financial Statements & Accounting ₹ crore A statement of revenue earned and costs incurred over a period, ending in the profit or loss for that period. Net Profit = Revenue + Other Income - Operating Expenses - Depreciation - Interest - Tax

Profit Before Tax Financial Statements & Accounting ₹ crore Profit after all operating and financing costs but before income tax is deducted. Profit Before Tax = Operating Profit + Other Income - Interest Expense - Exceptional Items

Promoter Holding Corporate Actions, Dividends & Governance % The proportion of a company's shares held by its promoters and the promoter group. Promoter Holding % = Shares Held by Promoter Group / Total Shares Outstanding x 100

Terms starting with P