Common investment terminology used in Australia, categorised alphabetically
A | B | C | D | E | F | G-H-I | J-K-L-M | N-O | P | Q-R | S | T | U-V-W-X-Y-Z
Paper profit (or losses)
Unrealised capital gains (or losses).
Par value
See face value.
Pari passu
A class of securities that has equal rights with another class of securities.
Partly-paid shares
In privatisations it is usual for shareholders to pay for their shares in two or three instalments.
Passive portfolio management
A style of buy-and-hold investment management.
Penny stocks
Speculative low priced shares.
Pooled investment
Any form of investment in which individuals collectively place their funds with a professional investment manager.
Portfolio
A selection of securities chosen according to an investor's goals.
Position
A view on future market movements and/or an investment based on that view.
Preference share
Shares that have preferential rights over ordinary shares to dividends and assets.
Premium
The amount by which a security is quoted above its face value, opposite of a discount. Also, the price paid for a put or call.
Price-earnings ratio (P/E)
Annual earnings per ordinary share divided by the current share price.
Primary market
When securities are first issued and the funds constitute new capital to the firm.
Private placement
The sale of securities directly to an individual or institutional investor without being offered to the public.
Program trading
Orders that are automatically triggered when a computer recognises that certain conditions are present.
Property trust
Pooled investments that specialise in real estate.
Prospectus
A legal document issued by a company setting out the terms of its public issue of securities.
Proxy
Written authorisation given by a shareholder for another person to vote their shares at a shareholders' meeting.
Put option
The right to sell a certain number of securities at a fixed price within a specific period of time.