P-Value: The P-value, or probability value, is a statistical measure that helps scientists determine the significance of their research results. It quantifies the probability of observing the test results, or more extreme results, assuming that the null hypothesis is true.…

P/E Ratio The P/E Ratio, or Price-to-Earnings Ratio, is a financial metric used to evaluate the relative value of a company's shares. It is calculated by dividing the current market price per share by the earnings per share (EPS). The…

Paid-in Capital refers to the total amount of money that a company receives from shareholders in exchange for shares of stock, which is above the par value of the stock. It represents the funds contributed by shareholders that are not…

PancakeSwap (CAKE) is a decentralized exchange (DEX) built on the Binance Smart Chain (BSC) that allows users to swap various cryptocurrencies without the need for a centralized authority. It utilizes an automated market maker (AMM) model, where users provide liquidity…

Par Value refers to the nominal or face value of a security stated by the issuer. For bonds, it is the amount paid back to the bondholder at maturity, while for stocks, it is the minimum price at which shares…

A Parent PLUS Loan is a federal loan program available to parents of dependent undergraduate students to help cover the costs of their child's education. These loans are issued by the U.S. Department of Education and allow parents to borrow…

Pareto Principle The Pareto Principle, also known as the 80/20 rule, states that for many phenomena, approximately 80% of consequences come from 20% of the causes. This principle suggests that a small number of inputs or actions often lead to…

Pari Passu is a Latin term meaning "on equal footing" or "without preference." In legal and financial contexts, it refers to a situation where multiple parties, claims, or obligations are treated equally and without priority over one another. For example,…

Passive income is earnings derived from a rental property, limited partnership, or other enterprise in which a person is not actively involved. It contrasts with active income, which is earned through direct involvement in a business or employment. Passive income…

Passive Indexing refers to an investment strategy that aims to replicate the performance of a specific market index by investing in the same securities that comprise that index, in the same proportions, without actively managing the portfolio. This approach minimizes…

Patent Cliff: A patent cliff refers to the point at which a pharmaceutical company’s exclusive rights to produce a drug expire, leading to the loss of market exclusivity. This allows generic manufacturers to produce and sell cheaper versions of the…

Pattern Day Trader refers to a regulatory designation for a trader who executes four or more day trades within a five-business-day period in a margin account, provided the number of day trades is more than 6% of their total trading…

A pension is a regular payment made during a person's retirement from an investment fund that they contributed to during their working life. It serves as a financial safety net for individuals after they stop working, ensuring they have a…

Per Stirpes is a legal term used in estate planning and inheritance law. It refers to a method of distributing an estate among heirs in which each branch of the family receives an equal share, regardless of how many heirs…

Per-Protocol Analysis refers to a method of analyzing data from a clinical trial based only on participants who adhered to the protocol of the study. This means that only those individuals who completed the study according to the predetermined guidelines…

Percent change is a measure of how much a value has increased or decreased relative to its original value, expressed as a percentage. It is calculated using the formula:Percent Change = ((New Value - Old Value) / Old Value) *…

A Percentage Lease is a type of commercial lease agreement where the tenant pays a base rent plus a percentage of their revenue or sales generated from the leased property. This arrangement is commonly used in retail environments, where the…

Perfect CompetitionPerfect competition is a market structure characterized by a complete absence of rivalry among the individual firms. In a perfectly competitive market, the following conditions hold: Many buyers and sellers, none of whom can influence market prices. Homogeneous products…

Permanent Capital Vehicles (PCV) are investment structures that provide a stable source of capital, typically used by private equity firms and investment funds. Unlike traditional funds with a set lifespan, PCVs allow investors to commit capital for an indefinite period,…

A "Permanent Employee" is an individual who is employed by a company on a long-term basis without a predetermined end date for their employment. These employees typically receive a consistent salary, benefits, and job security as part of their employment…

Personal Moat refers to the unique qualities, skills, or advantages that an individual possesses, which provide them with a competitive edge in their career or personal life. This concept is akin to the economic term "moat," which describes a business's…

PEST Analysis is a strategic management tool used to analyze the external macro-environmental factors that can impact an organization. The acronym PEST stands for Political, Economic, Social, and Technological factors. This analysis helps organizations understand the broader environment in which…

Petroleum is a naturally occurring, flammable liquid found beneath the Earth's surface, composed mainly of hydrocarbons and other organic materials. It is a vital energy resource, used for fuel, lubrication, and as a raw material in various chemical processes.Examples of…

Phantom Debt refers to a debt that a consumer owes but is either nonexistent, inaccurate, or inflated. This type of debt often arises from fraudulent practices, billing errors, or aggressive collection tactics where individuals are pursued for amounts they do…

The Phillips Curve is an economic concept that illustrates the inverse relationship between the rate of inflation and the rate of unemployment within an economy. The theory suggests that, in the short run, lower unemployment comes with higher inflation and…