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Parent Plus Loan

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

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

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

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

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

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

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…

Pension

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

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

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

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) *…

Percentage Lease

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 Competition

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)

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,…

Permanent Employee

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

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

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

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

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…

Phillips Curve

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…

Pi Network

Pi Network Pi Network is a cryptocurrency project that allows users to mine Pi coins using their mobile devices without consuming significant resources. Launched in 2019 by a team of Stanford graduates, it aims to provide a more accessible way…

Pigs Get Slaughtered

"Pigs Get Slaughtered" is a financial proverb suggesting that greed can lead to significant losses. The phrase warns investors that those who are overly ambitious and take excessive risks, often in pursuit of higher profits, may ultimately face dire consequences.…

Pink Sheet Stocks

Pink Sheet Stocks refer to stocks that are traded over-the-counter (OTC) and are not listed on major stock exchanges like the NYSE or NASDAQ. These stocks are often associated with smaller, less transparent companies that do not meet the listing…

Pink Tax

The "Pink Tax" refers to the extra amount that women are charged for products and services compared to men, despite the items being similar or identical in function. This pricing disparity can be seen in various sectors, including personal care…

Plant Assets

Plant Assets refer to long-term tangible assets that a company uses in its operations to generate revenue. These assets are not intended for resale and are typically subject to depreciation over time. Plant assets include buildings, machinery, vehicles, and equipment.…