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P & I: Principal & Interest. Monthly payment to registered holders of mortgage-backed securities.

Par Value: Either the stated value of a bond (e.g. $1,000) or an arbitrary bookkeeping value of stocks. Also known as Face Value, Nominal Value.

Participating Preferred Stock: Rare type of preferred stock that, in addition to paying a stated dividend, offers the holder the right to participate with the common stockholder in additional distributions.

Partnership: Business conducted by two or more individuals who pool their money and talent, and together share the profits and losses.

Pass-Through Securities: Securities representing pooled debt obligations that pass income from debtors to its shareholders. The most common type is a mortgage-backed certificate.

Past Performance: All performance quotations and rankings should include mention that past performance is no guarantee of future results, and quotes assume that dividends and capital gains have been reinvested.

Payable Date: The date on which a declared distribution is scheduled to be paid to shareholders of record. The payment date is often two or more weeks after the record date and is set by the Board of Directors.

Penny Stocks: Low-priced issues that often are highly speculative, selling at less than $1 a share.

Pension Plan: Retirement plan, normally related to an employee's salary, in which the employer contributes periodically to a trust to pay benefits to employees or their beneficiaries after retirement.

Physical Shares: Actual stock certificates held by clients or brokers representing ownership of a specific number of shares.

Plan Shares: Client stock certificates which have never been detached from the certificate book or unissued client shares which are held by the system.

Pledge: Transfer of property, such as securities or the cash surrender value of life insurance, to a lender or creditor as collateral for an obligation.

Point: Change of value in the yield of stocks and bonds. Represents $1 for stock, 1% for bonds, and a movement of 1 unit for the stock market (measured by an Index).

POP: Public Offering Price. Cost of individual shares of a mutual fund equal to the net asset value plus sales charge. Also known as Ask Price.

Portfolio: Holdings of securities by an individual or institution. A portfolio contains more than one bond, stock or commodity and strives to reduce risk associated with investing in a single security by diversifying among an array of such securities.

Portfolio Insurance: Municipal bonds can carry insurance against default to protect principal; insurance does not extend to bond's market value or to mutual fund shares.

Portfolio Manager: Person who makes investment decisions concerning a mutual fund, individual or corporation.

Portfolio Turnover Rate: Volume of shares traded in a year as a percentage of total shares outstanding for an individual or professionally managed portfolio.

Preferred Stock: Class of stock which is given preferential treatment over common stock in the payment of dividends and the liquidation of assets.

Premium: Amount by which a preferred stock, bond, option or shares of a closed-end investment company may sell above its par value or net asset value. For a new issue of bonds or stocks, it is the amount the market price exceeds the original selling price.

Premium Bond: Any bond that sells at a price above the face amount.

Price-Earnings Ratio: Price of a share of stock divided by earnings per share for a 12-month period. Also called P/E Ratio.

Primary Market: Market for new issues of securities, as distinguished from the Secondary Market, where previously issued securities are bought and sold. A market is primary if the proceeds of sales go to the issuer of the securities sold.

Prime Rate: Interest rate that banks charge to their most creditworthy customers.

Principal: Basic amount invested, exclusive of earnings. Also refers to a dealer buying or selling for his/her own account.

Profit-Sharing Plan: Kind of retirement plan in which an employer contributes to a trust to provide benefits to employees or their beneficiaries after retirement.

Proprietorship: Common form of business organization which is owned and managed by one individual.

Prospectus: Official disclosure document required by federal law to precede or accompany the sale of a security. The prospectus describes a mutual fund's investment objectives, management policies and other relevant shareholder information.

Proxy: Written authorization from a stockholder that empowers someone to vote in his or her behalf.

Proxy Statement: Disclosure document delivered to shareholders required by the Securities and Exchange Commission (SEC) that must be issued to provide information on matters in which a proxy vote is being solicited.

Put Option: Contract that permits the sale of security (and requires a party to purchase such security) at a set price within a specified time.