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P R S (Purchase and Sale) Statement |
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Statement sent by a commission house to a customer when his futures position has changed, showing the number of contracts involved, the prices at which the contracts were bought or sold, the gross profit or loss, the commission charges, and the net profit or loss on the transaction |
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Par |
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A particular price, 100 percent of principal value; "100." |
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Parity |
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A theoretically equal relationship between farm product prices and all other prices. In farm program legislation, parity is defined in such a manner that the purchasing power of a unit of an agricultural commodity is maintained at its level during an earlier historical base period. |
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Pass-Through |
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Security in which the periodic interest and principal are passed from a mortgagor to an investor through an intermediary. |
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Pip or Points |
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Depending on context, normally one basis point. i.e. 0.0001. |
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Pit |
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The area on the trading floor of some exchanges where trading in futures is conducted by open outcry. |
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Plaza |
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Agreement Agreement made between the US, France, Germany, Japan and the UK in 1985 to work together on influencing exchange rates. |
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Political Risk |
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The uncertainty in return on an investment due to the possibility that a government might take actions which are detrimental to the investor's interests. |
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Point |
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A dollar amount equal to one percent of principal value of a note or other debt instrument. |
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Position |
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A market commitment. A buyer of futures contracts is said to have a long position and, conversely, a seller of futures contracts is said to have a short position. |
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Position Limit |
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The maximum number of speculative futures contracts one can hold as determined by the Commodity Futures Trading Commission and/or the exchange upon which the contract is traded; also called Trading Limit. |
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Position ~ding |
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An approach to trading in which the trader either buys or sells contracts and holds them for an extended period of time, as distinguished from Day Trading, in which the trader will normally initiate and offset his position within a single trading session. |
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Premium |
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More expensive than the spot price, e.g., forward premium. |
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Principal |
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A person who acts for himself and makes his own market. |
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Prepayment |
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A premature payoff of a loan. Prepayments can be made for the total or partial value of the loan. |
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Price Discovery |
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'The determination of a fair market value for a commodity. |
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>Price Limits |
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The maximum price advance or decline from the previous day's settlement price permitted for a contract in one trading session by the rules of the exchange. See also Variable Limits. |
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Prime Rate |
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Interest rate charged by major banks to their most credit-worthy customers. |
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Principal |
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(1) Sole proprietor, general partner, officer or director, or person occupying a similar status or performing similar functions, having the power to exercise a controlling influence over the activities of the entity. (2) Any holder or beneficial owner of 10 percent or more of the outstanding shares of any class of stock of the entity. (3) Any person who has contributed 10 percent or more of the capital of the entity. (4) Outstanding balance of a loan. |
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Private Wires |
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Wires leased by various firms and news agencies for the transmission of information to branch offices and subscriber clients. |
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Privileges |
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An early form of agricultural options no longer traded. |
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Public Elevators |
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Grain-storage facilities, licensed and regulated by state and federal agencies, in which space is rented out to whomever is willing to pay for it; some are also approved by the commodity exchanges as regular for delivery of commodities against futures contracts. |
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Purchase and Sale Statement (PRS) |
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A statement sent by a Futures Commission Merchant to a customer when a futures or options position has been liquidated or offset. The statement shows the number of contracts bought or sold, the prices at which the contracts were bought or sold, the gross profit or loss, the commission charges and the net profit or loss on the transaction. Sometimes combined with a Confirmation Statement. |
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Put Option |
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An option that gives the option buyer the right to sell (go "short") the underlying futures contract at the strike price on or before the expiration date. |
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Penny Stocks |
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While many legitimate companies have share prices that low, the term "penny stocks" includes stocks that are priced at $5 and below and usually refers to speculative companies with little or no real business that are heavily promoted by hard-selling brokerage firms.
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Pink Sheets |
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The printed quotations of the bid and ask prices of over-the-counter stocks, published by National Quotation Bureaus, Inc. |
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Point |
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A change of $1 in the market price of a stock is one point. |
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Portfolio |
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A collection of securities held by an investor. |
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Private Placement |
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The sale of stocks or other investments directly to an investor. The securities in a private placement don't have to be registered with the Securities and Exchange Commission.
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Producer Price Index (PPI) |
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A group of statistics compiled by the Labor Department that are used as a gauge of inflation as the wholesale level. The index for finished goods-which tracks commodities that will not undergo further processing and are ready for sale to the ultimate user-is the most prominently reported of the statistics.
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Profit Taking |
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Selling securities after a recent, often rapid price increase. |
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Program Trading |
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Stock trades involving the purchase or sale of a basket including 15 or more socks with a total market value of $1 million or more. Most program trades are executed on the New York Stock Exchange, using computerized trading systems. Index arbitrage is the most prominently reported type of program trading.
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Put Option |
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An agreement that gives an investor the right but not the obligation to sell a stock, bond, commodity or other instrument of a specified price within a specific time period.
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Put/Call Volume Ratio |
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The volume of trading in puts-options to sell-divided by the total calls-options to buy-for a security or an index.
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Payrolls |
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Change in nonfarm payrolls in thousands, monthly, from Labor Department.
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Productivity |
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Change in nonfarm business productivity at annual percentage rate, quarterly, from Labor Department.
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PPI |
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Percentage change in Producer Price Index for finished goods, monthly, from Labor Department.
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PPI core |
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Percentage change in PPI for finished goods excluding food and energy, monthly, from Labor Department. |
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Personal income |
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Percentage change in household income, monthly, from Commerce Department.
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Purchases deflator |
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Change in gross domestic purchases price deflator at annual percentage rate, quarterly, from Commerce Department.
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