Dictionary
- Position trading
- A style of trading characterized by holding open positions for an extended period of time. Contrast this with day trading, where a trader buys, then sells out of a position before the market closes that day.
- Price-Earnings Ratio
- Stock price divided by annual earnings per share.
- Primitive Security, Derivative Security
- A primitive security is an instrument such as a stock or bond for which payments depend only on the financial status of its issuer. A derivative security is created from the set of primitive securities in an attempt to yield returns that depend on factors beyond the characteristics of the issuer and that may be related to prices of other assets.
- Principal
- The person for whom a broker executes an order, or dealers buying or selling for their own accounts. The term principal may also refer to a person's capital or to the face amount of a bond.
- Profit Taking
- Selling tradables that have appreciated since initial purchase in order to take advantage of the appreciation.