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PBOE - Philadelphia Board of Options Exchange PCOE - Pacific Options Exchange ( See REGIONAL STOCK EXCHANGES


PEG - A tie to a currency or a fixed exchange rate, usually established by government intervention. For more than a decade, Hong Kong has pegged its currency at the rate of 7.8 Hong Kong dollars to one U.S. dollar.

PENNY STOCK - A stock that sells for less than $1 a share.

PERCENT CHANGE - The percentage difference of the current price from the previous trading day, week, quarter or year.

PORTFOLIO - A diverse group of investments in various stocks, bonds and money market instruments generally with a specific objective in mind.


PREFERRED STOCK - A class of shares in a public corporation with different - usually more desirable - rights than common stock. Preferred stock pays a set dividend, and may receive different voting rights in the company's business. Owners have preference over common stockholders in the payment of dividends and liquidated assets.

PRICE WEIGHTED INDEX - Index wherein the higher priced component stocks have a greater percentage impact on the index than do lower priced stocks. The Dow Jones industrial average is a price weighted Index.

PRICE/EARNINGS RATIO (PE), also called PRICE/SALES RATIO - The price of a stock divided by its earnings per share. PEs are used to gauge the relative worth of a company' stock. When compared to other companies in the same industry, the companies with the lowest PEs are generally earning higher profits.

PRIME RATE - A benchmark rate used by banks to set interest charges on a variety of corporate and consumer loans, including some adjustable home mortgages, revolving credit cards and business loans. Banks set the rate based on their borrowing costs, as reflected by the interest on short-term Treasury securities in the bond market.

PROJECTED PRICE EARNINGS RATIO (PPE) - A PPE that's higher than the current PE indicates analysts expect earnings to go down. A lower PPE indicates analysts think earnings will go up.

PROXY STATEMENT - A legal document that gives information on company changes that requires shareholder approval.

PUT (BONDS) - Bond holder's right to redeem a bond before maturity.

PUT (OPTIONS) - The right to sell a specific number of shares at a specified price by a certain date.