P/E Ratio (Price-to-Earnings Ratio) The P/E ratio measures a company’s current share price relative to its earnings per share. In the UK, this metric is widely used to assess the valuation of FTSE-listed companies.
Preferred Shares Preferred shares offer fixed dividends and have priority over ordinary shares in asset distribution. In the UK, preferred shares are less common but are valued for their steady income potential.
Portfolio Management Portfolio management involves creating and overseeing a collection of investments to meet financial goals. In the UK, wealth managers and DIY investors use this approach for ISAs, pensions, and other accounts.
Private Equity Private equity involves investing in companies not listed on public stock exchanges. In the UK, private equity firms play a crucial role in funding startups, buyouts, and growth-stage businesses.
Passive Investing Passive investing focuses on replicating the performance of an index, such as the FTSE 100. In the UK, ETFs and index funds are popular tools for passive investment strategies.
Pound Cost Averaging Pound cost averaging is a strategy of investing a fixed amount regularly, regardless of market conditions. In the UK, it is widely used for long-term investments in ISAs and pensions.
Pension Fund Pension funds pool contributions from employees and employers to invest for retirement. In the UK, these funds are significant institutional investors in domestic and global markets.
Publicly Traded Company A publicly traded company has its shares listed on a stock exchange, such as the London Stock Exchange. In the UK, these companies are subject to strict regulations to protect shareholders.
Property Investment Fund These funds invest in residential or commercial real estate, offering returns through rental income and capital appreciation. In the UK, REITs are a popular option for property investment.
Preferred Return A preferred return is the minimum return that must be paid to investors before profits are distributed. In the UK, preferred returns are common in private equity and property investment deals.
Principal The principal is the initial amount of money invested or borrowed. In the UK, protecting the principal is a key consideration for conservative investors in bonds or gilts.
Profit Margin Profit margin measures the percentage of revenue retained as profit. In the UK, this metric is essential for evaluating the financial health of companies across industries.
Put Option A put option gives the holder the right to sell an asset at a specified price before a certain date. In the UK, put options are used to hedge against potential declines in asset prices.
Premium Bond Premium Bonds are a UK government-backed savings product offered by NS&I. They provide tax-free returns through prize draws instead of traditional interest.
Public Offering A public offering involves selling shares of a company to the public for the first time. In the UK, IPOs are a significant event for both companies and investors on the London Stock Exchange.
Price-to-Book Ratio (P/B Ratio) The P/B ratio compares a company’s market value to its book value. In the UK, this is a key valuation metric for industries like banking and real estate.
Passive Income Passive income is earnings derived from investments or assets requiring minimal effort to maintain, such as dividends or rental income. In the UK, ISAs and property investments are common sources of passive income.
Private Placement A private placement is the sale of securities directly to a select group of investors. In the UK, this is often used by startups and growth companies to raise capital without a public offering.
Price Target A price target is the projected value of a stock, typically set by analysts. In the UK, price targets influence investor sentiment and trading activity in FTSE-listed companies.
Pension Contribution Allowance The pension contribution allowance is the maximum amount that can be contributed to a pension each year while still receiving tax relief. In the UK, this allowance is capped at £60,000 (2024–25).
Price Discovery Price discovery is the process by which the market determines the fair value of an asset. In the UK, exchanges like the London Stock Exchange play a critical role in the price discovery of listed securities.
Portfolio Diversification Portfolio diversification involves spreading investments across different asset classes, sectors, or geographies to reduce risk. In the UK, diversification often includes FTSE equities, gilts, and international assets.
Preference Shareholder Preference shareholders hold shares that provide fixed dividends and priority over ordinary shareholders. In the UK, preference shareholders are often paid before equity holders in case of liquidation.
Price Elasticity of Demand This measures how sensitive the demand for a product is to changes in its price. In the UK, this is an important factor in evaluating companies in consumer-facing industries.
Principal-Agent Problem The principal-agent problem arises when the interests of company owners (shareholders) and managers diverge. In the UK, corporate governance frameworks aim to mitigate this issue.
Private Bank Private banks provide tailored financial services to high-net-worth individuals. In the UK, institutions like Coutts specialise in wealth management and private banking.
Public Sector Net Debt (PSND) PSND measures the total debt of the UK government relative to GDP. This figure is a key economic indicator influencing bond yields and investor sentiment.
Portfolio Turnover Ratio The portfolio turnover ratio indicates the frequency of asset trading within a portfolio over a given period. In the UK, high turnover may imply higher transaction costs but also active management.
Price Risk Price risk refers to the potential for losses due to unfavourable price movements in assets. In the UK, this risk is a concern for equities, commodities, and real estate investors.
Private Client Fund A private client fund is a bespoke investment portfolio managed for high-net-worth individuals. In the UK, these funds cater to clients seeking personalised wealth management strategies.
Preferred Stock Dividend This is a fixed dividend paid to holders of preferred shares before ordinary shareholders receive dividends. In the UK, these dividends are particularly attractive to income-focused investors.
Public-Private Partnership (PPP) A PPP is a collaboration between government and private companies to finance and manage public projects. In the UK, PPPs are widely used in infrastructure development, such as schools and hospitals.
Pension Annuity A pension annuity converts pension savings into a guaranteed income for life. In the UK, annuities are an option for retirees seeking financial security.
Portfolio Rebalancing Rebalancing involves adjusting a portfolio’s asset allocation to maintain desired risk levels. In the UK, this is a common strategy for ISA and pension holders seeking long-term stability.
Performance Fee A performance fee is charged by fund managers based on returns above a predefined benchmark. In the UK, hedge funds and actively managed funds often include performance fees.
Put-Call Ratio The put-call ratio compares the volume of traded put options to call options. In the UK, this metric is used to gauge market sentiment and potential reversals in trends.
Public Sector Borrowing Requirement (PSBR) PSBR is the amount the UK government needs to borrow to meet its expenditure. It impacts interest rates and bond yields, influencing investment strategies.
Pooled Investment A pooled investment aggregates money from multiple investors to invest in diversified assets. In the UK, mutual funds, ETFs, and REITs are popular pooled investment vehicles.
Pension Freedom Pension freedom refers to UK legislation allowing retirees flexible access to their pension savings. This policy has increased demand for investment products suitable for retirees.
Price Spread The price spread is the difference between the bid and ask price of a security. In the UK, a narrower spread typically indicates higher liquidity, as seen in FTSE 100 stocks.
Pension Lifetime Allowance (LTA) The LTA was the maximum amount that could be held in a pension without incurring additional tax. In the UK, the LTA was abolished in 2023, simplifying pension rules for high earners.
Public Debt Market The public debt market includes government bonds, such as UK gilts, issued to fund national expenses. This market is a cornerstone of the UK’s financial system, attracting institutional and retail investors.
Preferred Stock Yield The preferred stock yield is the annual dividend expressed as a percentage of the stock’s current market price. In the UK, this is a key metric for evaluating income-generating investments.
Portfolio Beta Portfolio beta measures the sensitivity of a portfolio’s returns to market movements. In the UK, a beta above 1 indicates higher volatility than the market, while below 1 indicates lower volatility.
Price Ceiling A price ceiling is a government-imposed limit on how high a price can be charged for a product. In the UK, this is relevant in regulated industries, such as energy and housing.
Profit and Loss Statement (P&L) The P&L statement summarises a company’s revenues, costs, and profits over a period. In the UK, it is a fundamental financial document for assessing corporate performance.
Passive Fund A passive fund tracks an index, such as the FTSE 100, aiming to match its performance. In the UK, these funds are cost-effective options for long-term investors.
Portfolio Yield Portfolio yield is the income generated by a portfolio as a percentage of its value. In the UK, this is particularly important for income-focused investors in ISAs and pensions.
Private Debt Fund These funds invest in debt instruments issued by private companies. In the UK, they provide an alternative to public bond markets, offering higher yields with additional risk.
Price Floor A price floor is the minimum price set by the government for goods or services. In the UK, this is seen in minimum wage laws and certain agricultural subsidies.
Pension Protection Fund (PPF) The PPF is a UK government-backed fund that protects members of defined benefit pension schemes if their employer becomes insolvent. It ensures retirees receive compensation even if their pension fund is underfunded.
Price Momentum Price momentum refers to the tendency of securities to continue moving in the same direction as recent trends. In the UK, momentum strategies are popular among technical traders in FTSE markets.
Public Company Accounting Oversight Board (PCAOB) Although a US-based body, the PCAOB influences global accounting standards, including UK companies with US listings, ensuring compliance with international financial reporting.
Private Wealth Management Private wealth management provides tailored investment and financial planning services to affluent individuals. In the UK, firms like St. James’s Place cater to high-net-worth clients.
Price Floor Agreement A price floor agreement sets a minimum price for transactions, often in commodities or industrial contracts. In the UK, it is relevant in regulated markets like agriculture and utilities.
Performance Benchmark A performance benchmark is a standard against which the returns of an investment are compared. In the UK, the FTSE 100 and FTSE All-Share are common benchmarks for equity funds.
Portfolio Duration Portfolio duration measures the sensitivity of a bond portfolio to changes in interest rates. In the UK, duration management is crucial for gilt investors in a rising interest rate environment.
Preferred Creditor A preferred creditor has priority over other creditors in the event of liquidation. In the UK, HMRC is often a preferred creditor when businesses become insolvent.
Profit Warning A profit warning is a public announcement by a company indicating that profits will fall below expectations. In the UK, these warnings often lead to significant share price drops.
Principal Protected Note (PPN) A PPN is an investment product guaranteeing the return of the principal amount while offering potential upside from market-linked returns. In the UK, these are often used by risk-averse investors.
Price Band A price band sets upper and lower limits for trading a security within a given period. In the UK, price bands help manage volatility and ensure orderly trading on platforms like the London Stock Exchange.
Public Sector Net Cash Requirement (PSNCR) PSNCR represents the cash shortfall the UK government must borrow to fund its spending. It directly impacts gilt issuance and bond market dynamics.
Put Spread A put spread involves buying and selling put options at different strike prices to limit risk and reward. In the UK, this strategy is used to hedge downside risks in equities.
Pension Drawdown Pension drawdown allows retirees to withdraw income from their pension pot while keeping the rest invested. In the UK, this flexible option has become popular since the introduction of pension freedoms.
Portfolio Immunisation Immunisation is a strategy to protect a portfolio from interest rate risk by matching asset duration to liabilities. In the UK, it is commonly used by pension funds managing long-term obligations.
Public Utility Investment Public utilities, such as water and energy companies, provide stable returns due to regulated pricing. In the UK, these stocks are often considered defensive investments.
Price Target Revision Analysts revise price targets based on updated company performance or market conditions. In the UK, these revisions influence trading activity in heavily followed stocks.
Peer-to-Peer (P2P) Lending P2P lending connects borrowers directly with individual lenders via online platforms. In the UK, platforms like Funding Circle offer attractive returns for investors but with higher risk.
Post-Tax Return The post-tax return is the net return on an investment after accounting for all taxes. In the UK, this is critical for evaluating investments in ISAs versus taxable accounts.
Portfolio Insurance Portfolio insurance uses derivatives or asset allocation strategies to limit downside risk. In the UK, this is particularly relevant for institutional investors managing large equity portfolios.
Put-Call Parity Put-call parity is a principle in options pricing that defines the relationship between put and call options of the same strike price and expiration. In the UK, traders use this to identify arbitrage opportunities.
Public Equity Public equity refers to shares traded on stock exchanges, such as the London Stock Exchange. In the UK, public equity investments are central to diversified portfolios.
Price Gap A price gap occurs when a security’s price opens significantly higher or lower than the previous close. In the UK, price gaps are often observed after major earnings announcements or economic data releases.
Post-Money Valuation Post-money valuation is the value of a company after external funding is added. In the UK, startups and venture capitalists frequently use this metric during funding rounds.
Portfolio Tracking Error Tracking error measures how closely a portfolio’s returns match its benchmark. In the UK, low tracking error is a desirable trait for index funds and ETFs.
Payback Period The payback period measures the time required for an investment to recover its initial cost. In the UK, this is a common metric for evaluating infrastructure and renewable energy projects.
Pooled Pension Investment Pooled pension investments aggregate funds from multiple pension schemes to invest collectively. In the UK, this is common in defined contribution schemes to provide diversification and lower costs.
Profitability Index The profitability index compares the present value of cash inflows to the initial investment. In the UK, it is widely used in capital budgeting to assess project viability.
Price Transparency Price transparency refers to the availability of clear and accessible information about transaction prices. In the UK, the London Stock Exchange ensures transparency for all listed securities.
Portfolio Optimization Portfolio optimisation uses statistical models to maximise returns for a given level of risk. In the UK, this strategy is widely used by wealth managers to construct balanced portfolios.
Par Value Par value is the nominal or face value of a bond or stock. In the UK, par value is important for understanding the basis of bond yields and share capital structures.
Public Sector Bonds Public sector bonds are issued by local governments or public bodies to fund projects. In the UK, municipal bonds are a niche but growing segment of the fixed-income market.
Price-to-Sales Ratio (P/S Ratio) The P/S ratio measures a company’s market value relative to its revenue. In the UK, it is commonly used to evaluate growth companies or startups with limited earnings history.
Put Option Writing Writing a put option involves selling a put to collect premiums, with the obligation to buy the underlying asset if exercised. In the UK, this strategy is used to generate income in stable markets.
Performance Attribution Performance attribution analyses the sources of a portfolio’s returns relative to a benchmark. In the UK, this is used by fund managers to explain performance drivers to investors.
Pension Scheme Actuary A pension scheme actuary evaluates the financial health of pension funds and determines contribution levels. In the UK, actuaries play a critical role in managing defined benefit schemes.
Portfolio Simulation Portfolio simulation uses historical data to model potential outcomes for different investment strategies. In the UK, this is a key tool for advisers assessing risk tolerance and investment objectives.
Private Investment in Public Equity (PIPE) PIPEs involve private investors purchasing shares of a publicly traded company at a discount. In the UK, PIPEs are a strategic financing option for cash-strapped companies.
Price War A price war occurs when companies compete by lowering prices, often eroding margins. In the UK, this is common in sectors like supermarkets and energy.
Primary Market The primary market is where securities are issued directly to investors for the first time, such as IPOs. In the UK, the London Stock Exchange facilitates the issuance of shares and bonds.
Public Sector Infrastructure Investment These investments fund large-scale projects like roads, hospitals, and schools. In the UK, infrastructure funds often focus on PPPs to provide long-term stable returns.
Price Clustering Price clustering refers to securities trading at rounded numbers, such as £10 or £100. In the UK, behavioural finance studies this phenomenon to understand investor psychology.
Put Spread Strategy A put spread strategy involves buying and selling put options at different strike prices to cap both risk and reward. In the UK, this is commonly used in FTSE 100 options trading.
Portfolio Carbon Footprint This measures the total carbon emissions associated with the investments in a portfolio. In the UK, ESG investors use this metric to align portfolios with sustainability goals.
Pension Transfer Value The transfer value is the amount a pension scheme offers a member to transfer their benefits to another scheme. In the UK, this is a critical decision for individuals considering moving defined benefit pensions.
Preferred Return Hurdle A preferred return hurdle is the minimum return private equity investors must receive before profits are shared. In the UK, this structure is common in venture capital and private equity deals.
Public Sector Asset Management This involves managing government-owned assets, such as real estate or infrastructure. In the UK, asset management firms often partner with public bodies to optimise returns.
Price-to-Cash Flow Ratio (P/CF Ratio) The P/CF ratio compares a company’s market value to its operating cash flow. In the UK, this metric is favoured for evaluating cash-intensive industries like utilities and telecommunications.
Portfolio Reinvestment Reinvestment involves using portfolio income, such as dividends or interest, to purchase additional assets. In the UK, reinvesting through ISAs or DRIPs can significantly enhance long-term returns.
Put Ratio Backspread This advanced options strategy involves selling a limited number of put options while buying a greater number of puts at a lower strike price. In the UK, it is used to profit from significant downside moves in an asset.
