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Glossary: P


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Panel on Takeovers and Mergers (POTAM)

The body that regulates the conduct of takeovers and mergers in the UK.

 

Pari Passu

This is the result of a line of stock being issued with a constraint on it, ie. Not ranking for a particular dividend. Once this constraint is passed the line of stock will be merged with the existing.

 

Partial execution

When only a part of an order is executed.

 

Participant

An investor or intermediary acting in a trading capacity.

 

Participating preference shares

Participating preference shareholders have the right to participate in the surplus profits of the company, after payment of equity and preferred dividend.

 

Partnership

In a partnership, two or more people jointly own the business. While general partners are fully liable for the debts of the business, limited partners have limited liability.

 

Passive fund

A fund in which the fund manager passively manages investments (see passive management).

 

Passive management

Fund managers do not attempt to beat the market. Instead, they try to mirror the performance of a selected market index such as the FTSE 100.

 

Pension fund

A fund set up by a company or government to invest the pension contributions of members and employees. These are then paid out when the beneficiaries reach the retirement age.

 

Percentage (%) change

The percentage change in the price of a security, i.e. the percentage of change between the last trade and the previous day's closing price.

 

Period name

Name given to a particular period. A period is defined by a specific set of rules which are effective for a specified period of time.

 

PFIQ

Pre Firm/Indq Quote Period

 

Physically settled

Settlement of a warrant by the delivery or receipt of an actual underlying asset. This contrasts with cash settlement, where no delivery of an underlying physical asset takes place just a cash difference.

 

PIQP

Pre IMQP

 

Placing

It is a method of flotation in which a company issues shares to a select group of institutional investors.

 

Plc (See public limited company)

 

PMC1

Closing Price Monitoring Extension, no Market Order Extension, supports volume check

 

PMCX

Closing Price Monitoring Extension, supports volume check.

 

PME1

Price Monitoring Extension, no Market Order Extension

 

PMEX

Price Monitoring Extension

 

PMON

Price Monitoring Override

 

PMQP

Pre MQP

 

POB1

Pre order Book Trading 1

 

POBT

Pre Order Book Trading

 

Portfolio

A group of investments held across asset classes (stocks, bonds, real estate, gold) or within the same asset class (exposure to stocks across companies and industries).

 

POTAM See Panel on Takeovers and Mergers

 

Pound cost averaging

A disciplined investment technique where fixed amounts are invested over regular periods (typically monthly) to accumulate wealth in shares, unit trusts and investment trusts.

 

Preference shares

These are normally fixed-income shares whose shareholders have the right to receive dividends before ordinary shareholders would rank above ordinary shareholders for the repayment of their investment in the company.

 

Premium

A term used to describe the price paid for a covered warrant.

 

Price

The price of a tradable instrument. This is the last automatic trade or uncrossing price for a security in SETS or the mid-price for a security in SEAQ, SEATS, AIM or an international security (that is securities in EULQ, LSTD, NLLD or OINT market segment.

 

Price monitoring

Automatic price monitoring capability that is used to limit extreme price deviations.

 

Price monitoring extension

A time extension to the auction call period. It occurs if the auction match price breaches price tolerance limits. The extension allows further entry and deletion of orders.

 

Price priority

Orders are first prioritised for execution according to their price. This is price prioritisation.

 

Price sensitive information

Information which, if made public, is likely to have a significant effect on the price of the company’s securities.

 

Price tolerance level

The percentage up to which the price of a security can increase or decrease from the base price.

 

Price/Earnings ratio (P/E ratio)

A measurement of a company’s rating, calculated by dividing the share price by the annual earnings per share. A high P/E ratio means the company is highly-rated by the stock market, suggesting that investors think its prospects are good.

 

Price-time priority

How orders are prioritised for execution. Orders are first ranked according to their price. Orders of the same price are ranked depending on when they are entered.

 

Primary market

The function of a stock exchange in bringing securities to the market for the first time. Money is raised either for the company at admission or through further issues to fund future growth.

 

Private company

A company which is not a public company and which is not allowed to offer its shares to the general public.

 

Privatisation

Conversion of a state-run company to public limited company status - often accompanied by a sale of its shares to the public.

 

Professional DRs

These are depositary receipts that are traded only by the institutional investors in the UK.

 

Prospectus

 When a company applies for a listing of its securities which are to be offered to the public in the UK, a prospectus is required in accordance with the UKLA’s Listing Rules, detailing information on the company, its accounts, directors and its securities.

 

Protected Portfolio

The transaction was reported as a protected portfolio or, was as a result of a worked principle agreement for portfolio transaction.

 

Protection Applied

The transaction was protected at the time of reporting it.

 

Public limited company (plc)

A company whose shares may be purchased by the public and whose share capital is not less than a statutory minimum. Not all plcs are listed companies.

 

Public offer

It is a method of flotation in which a company issues shares to the public at large, including private and institutional investors.

 

Public relations

Public relations consultants are employed by companies to keep their business on the financial pages and in the minds of investors.

 

Public sector issuers

States and their regional and local authorities, state monopolies, state finance organisations, public international bodies and statutory bodies.

 

Put - covered warrant

A covered warrant that gives the holder the right, but not the obligation, to sell the underlying at a future date and specified price.

 

Put - option

It is an option that gives the buyer the right to sell an underlying asset at a future date at a specified price.

 

Put - warrant

A put warrant allows the holder to benefit from a falling market. It rises in value when the underlying asset falls in value.

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