Stock Glossary - P
The Pig
Pigs are typically greedy, high-risk investors seeking maximum returns in a short period of time. They are known to be impatient and will take any risk in order to make quick money. Read more...
Poison Pill Strategy
Poison pill strategy, developed in the 1980's, is designed to block an investor from accumulating a majority stake in a company and taking control of that company.
When a purchasing organization obtains a certain percentage of a company's shares, a poison pill is "triggered." Traditionally, poison pills are triggered when a hostile buyer obtains between 10% and 20% of the shares. Watch On YouTube
Promoters
A promoter is someone who starts a business with a certain goal in mind and then takes the measures necessary to achieve that goal.
Par value
A security's nominal face value.
Proxy
At a company meeting, someone who votes for and on behalf of a shareholder.
Penny Stock
A stock with a very low share price or very low market capitalization value.
Pump & Dump
Brokers and other stock promoters frequently use the pump-and-dump technique to take advantage of penny stocks' unpredictable, highly impressionable value.
Brokers and other stock promoters frequently use the pump-and-dump technique to take advantage of penny stocks' unpredictable, highly impressionable value.
The brokerage pays a low price for the penny stock and then promotes its value to the media through a newsletter, calls, and emails in an effort to artificially and briefly increase the price.
Price-to-Book
A ratio that evaluates the stock price of a company in relation to its book value (assets minus liabilities).
The price-to-book is determined as follows:
Share Price/Book Price per share OR Market Capitalization/Book Price
Price-to-Sales
Price-to-sales ratio, which measures how much a company's stock is worth in relation to its sales: Share price/Sales per share
Paper Trading
- Trading stocks with a fake account or with fake money.
- A way to practice before doing live trading.
Another form of paper trading is virtual trading in which the investor's portfolio is monitored by computer software.