Page 133 - PRIAA Glossary
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PRICE LIMIT ORDER
A customer order that specifies the price at which a trade can be executed.
PRICE RETURN EQUITY SWAP
Similar to a total return swap, except that the price return swap doesn’t contain dividend payments. See also “total return swap (TRS)”.
PRICE-TO-BOOK RATIO (P/B)
A ratio of net assets to the market value of the company. This ratio compares the accounting value to the market value. This is a metric used by analysts and portfolio managers for stock selection.
PRICE-TO-EARNINGS RATIO
The profit generated by a company per share. It is a
metric calculated by dividing the share price by the earnings per share and is usually published within companies’ financial statements.
PRIMARY DEALER
A bank or broker/dealer who is able to make business deals directly with the Federal Reserve. The primary dealers buy most of the government issued bonds and resell them, creating a secondary market. In the United States, the major investment banks are primary dealers, including Deutsche Bank Securities, Citigroup Global Markets, Goldman Sachs, etc.
PRIMARY ECONOMIC TERMS (PET)
Primary/core economic terms of an over-the-counter (OTC) derivative transaction.
PRIME BROKER
Institution or individual that provides services such as securities lending, leveraged trade executions, cash management, etc.
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