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primary market / Primärmarkt / marché primaire / mercato primario
The market on which new securities are launched and enter into circulation. See also secondary market.
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UBS Dictionary of Banking
P/B / KBV / P/VC
Abbr. for price/book value.
P/E
Abbr. for price/earnings ratio.
P/E ratio
Short form for price/earnings ratio.
Pa
palladium / Palladium / palladium / palladio
Palladium is a precious metal. See precious metals.
Panda / Panda / Panda / Panda
Chinese gold coin of 1 ounce fine gold with a face value of CNY 100. Also minted with fine gold content of 1/2, 1/4, 1/10 and 1/20 ounce.
paper money
Synonym for banknote.
paper profit (loss) / Papiergewinn (-verlust) / gain (perte) comptable / guadagno (perdita) nominale
Non-realized capital gains (or book losses) on securities. The difference between the current price and the original purchase price.
par value / Nennwert / valeur nominale / valore nominale
Also: face value, nominal value. Value of a security as printed on its face. Ordinarily not identical with the market value. Swiss law prescribes a minimum par value of CHF 0.01 per share, whereas in the United States and Canada shares may be issued without par value.
par value price / Parikurs / cours au pair / corso alla pari
Price of a security which is equal to its nominal or face value.
Paris Club / Pariser Club / Club de Paris / Club di Parigi
Also: Club of Paris (more rarely). International forum which convenes to negotiate rescheduling the debt of heavily indebted countries. The negotiations are held between the delegates of the various creditor and debtor countries. See also moratorium.
parity / Parität / parité / parità
Exchange rate between two currencies. Dollar parity, for instance, is the price of a currency expressed in dollars. See also gold parity, purchasing power parity, parity price.
parity price / Paritätskurs / cours de parité / corso alla pari
The base price at which US stocks are traded on the Swiss Exchange. Equals the share price on the NYSE translated at the current exchange rate.
partial acceptance / Teilakzept / acceptation partielle / accettazione parziale
An acceptance which varies from the terms of the bill itself, e.g. in that it calls for payment of only part of the amount. See also bill of exchange.
partial convertibility / Teilkonvertibilität / convertibilité limitée / convertibilità parziale
Partial convertibility means that a currency can be converted into other currencies at least to a certain extent. See also full convertibility, convertibility.
partial dividend / Abschlagsdividende/ dividende intérimaire / dividendo interinale
See interim dividend.
participating bond / Participating Bond / obligation participante / participating bond
A corporate bond that, in addition to a fixed interest rate, offers the right to a share in net profit.
participation capital
Synonym for participation certificate capital.
participation certificate / Partizipationsschein / bon de participation / buono di partecipazione
Abbr.: PC. A security (registered or bearer) incorporating the right to participate in the ownership (equity) of a corporation, with some legally prescribed rights but without other rights granted to shareholders (e.g. the right to vote at shareholders' meetings). In Switzerland, participation certificates serve a similar function to dividend right certificates and are issued against cash contribution for the purpose of raising capital. As is the case with capital stock, participation certificates form part of the equity capital of a company. The minimum par value in Switzerland is CHF 0.01.
participation certificate capital / Partizipationskapital / capital-participation / capitale di partecipazione
Also: participation capital. Capital raised in addition to a company's share capital, as provided for in its articles of association. Legally governed in Switzerland by OR 656b. Participation capital may not exceed two times share capital. No minimum capital or minimum contribution (unlike with share capital).
passive management / passives Management / gestion passive / gestione passiva
Portfolio management strategy where the manager tracks a benchmark index while making as few transactions as possible in order to minimize transaction costs.
passporting
A term describing the right to conduct financial services across the EU based on a single authorization or approval. Firms authorized in one Member State acquire passporting rights enabling them to provide financial services and activities on a cross-border basis and to establish branches in other Member States.
payable in advance / pränumerando / payable par anticipation / pagabile anticipatamente
Expression denoting that interest is payable at the beginning of the interest period (year, six months, etc.). Also used for any other payments made ahead of time (e.g. rents). Opposite: payable in arrears.
payable in arrears / postnumerando / payable à terme échu / pagabile posticipatamente
Term used to denote that interest is payable (and credited) at the end of the interest period (year, six months, etc.). Also used for any other retrospective payments (e.g. salaries). Opposite: payable in advance.
pay-as-you-go system / Umlageverfahren / système de la répartition / sistema di ripartizione
Financing method used by pension funds under which employees' contributions during a particular period cover the benefits paid out to the retirement beneficiaries during that period. The Swiss state old age and surviving dependants' pension scheme (AHV) is a pay-as-you-go system. Opposite: funded system.
payee / Wechselnehmer / preneur d'un effet / prenditore
Also referred to as the recipient. Person or company to whom or to whose order the amount written on a bill, cheque or negotiable instrument by the drawer is to be paid.
payer
Synonym for drawee (1).
paying agent / Zahlstelle / domicile de paiement / domicilio di pagamento
Agent or bank appointed by the issuer of securities to carry out all ongoing transactions that arise for the owners of the said securities, e.g. payment of dividends and interest coupons.
paying office
Synonym for paying agent.
paying-in slip / Einzahlungsschein / bulletin de versement / polizza di versamento
Form which can be used at either a bank or a post office to make a deposit or transfer money in favour of a recipient. See also bank payment slip with reference number.
payment (of securities subscribed) / Liberierung / libération / liberazione
Payment for the securities allotted under subscriptions to new or conversion issues. In the case of equities, this can be either full or partial, depending on whether only part or all of the share's par value is paid. See also non-paid-up capital.
payment guarantee / Zahlungsgarantie / garantie de paiement / garanzia di pagamento
A payment guarantee secures any claims by the seller on the buyer for payment of the contract price by the agreed date. Often used in the import-export business instead of a documentary credit where delivery is against 'open account'. The guarantee amount is as a rule the contract price or a part thereof. The term mostly corresponds to the period allowed for payment, plus 15 days for example. See also bank guarantee.
payment order / (1) Zahlungsauftrag (2) Anweisung / (1) ordre de paiement (2) assignation / (1) ordine di pagamento (2) assegno
(1) An order to a bank from a customer instructing it to make a payment in favour of a third party.
(2) Authorization to transfer money, securities or other fungibles for the account of the authorizing party to another person entitled to receive the same in his own name (Article 466, Swiss Federal Code of Obligations). Article 1147 stipulates that payment orders not designated as bills of exchange but made out expressly to the order of a beneficiary and otherwise meeting the requirements of a drawn bill are bill-like payment orders.
payment transfers / Zahlungsverkehr / trafic des paiements / operazioni di pagamento
Also: payment operations. Money debt payments. Payment transfers are said to be cashless when effected as accounting entries only, i.e. without transferring physical money.
payoff diagram / Pay-off-Diagramm / diagramme pay-off / diagramma di pay off
Also: payout diagram; payoff profile. Graph representing the correlation between the amount paid out for a derivative on maturity and the spot price of the underlying.
payout diagram
Synonym for payoff diagram.
payoff profile
Synonym for payoff diagram.
pay-out ratio / Gewinnausschüttungsquote / coefficient de couverture du dividende / rapporto dividendo/utile
Also: payout ratio. A financial statistic expressing the ratio of cash flow to distributed earnings as a percentage of net profit. It indicates what proportion of the earnings generated in a given year were actually distributed.
Pc
PC
Abbr. for participation certificate.
Pe
PEG ratio / PEG-Ratio / ratio PEG / coefficiente PEG
Abbr. for price/earnings growth. Price/earnings ratio divided by projected average earnings growth as a percentage.
penny stock / Penny-Stock / penny stock / penny stock
Stock issued at a price of less than one dollar, usually for the purpose of attracting buyers who feel that they are getting a bargain by being able to buy a lot of shares for little money. Usually highly speculative shares and often of questionable value.
PER / KGV / PER / P/U
Abbr. for price/earnings ratio.
per capita income / Pro-Kopf-Einkommen / revenu par tête / reddito pro capite
A measure representative of a country's wealth, generally arrived at by dividing the gross national product, gross domestic product or national income by its population. Per capita income is widely used to compare the state of a country's economy over time or relative to other countries.
percentile / Perzentil / centile / percentile
The value of a variable below which a certain percentage of observations fall.
performance / Performance / performance / performance
(1) Change in the price of a security.
(2) Change in an index covering part or all of a market.
(3) Change in the income generated by a portfolio.
(4) Effect produced by the investment policy employed by an investment advisor or a fund management company measured against the investment targets.
performance bond / Performance-Bond / performance bond / performance bond
Bond, usually issued by a bank, guaranteeing specific monetary payment to a beneficiary if the purchaser or maker fails to perform or acts in violation of a contract. In the United States, a performance bond puts the issuer under obligation to render the performance himself. See also bank guarantee.
permanent holdings / dauernde Beteiligungen / participations permanentes / partecipazioni permanenti
Long-term investment in another company, e.g. through the acquisition of shares (an equity interest). Unlike investing in fixed-interest securities, primarily to benefit from the expected return and/or possible capital gains, permanent holdings aim to exert an influence on the management of the company in which the equity interest is held or to achieve similar objectives. Depending on the circumstances, permanent holdings may have the object of securing a certain share of a company's equity (minority or majority holding). Article 25 of the Swiss Banking Law Ordinance requires that permanent holdings of the Swiss banks be stated separately from other assets carried in the balance sheet. Article 25c stipulates that supplementary notes must be prepared giving details of permanent holdings.
perpetual annuity / ewige Rente / rente perpétuelle / rendita perpetua
Government bond that need never be redeemed (but may be, at the discretion of the government); only the payment of interest is guaranteed. Issued most commonly in France and the United Kingdom, where such bonds are known as consols (short for consolidated annuities). For some years large companies have also issued bonds and notes without fixed maturities (perpetual floating rate notes).
perpetual bond / ewige Anleihe / emprunt perpétuel / prestito perpetuo
Bond with no maturity date. Perpetual bonds make regular interest payments, but never redeem the principal amount. To get back the capital invested in such bonds, investors must sell them on an exchange.
personal account / Privatkonto / compte privé / conto privato
Bank account operated as a current account by private individuals with special interest and withdrawal conditions. See also savings account.
personal identification number
See PIN.
personal loan / (1) Kleinkredit (2) Personalkredit (3) Privatkredit / (1) petit crédit (2) prêt personnel (3) crédit privé / (1) piccolo credito (2) prestito personale (3) credito privato
(1) Loan for a relatively small amount, repayable in instalments and usually granted to salaried employees for personal consumption and durable goods purchases. Personal loans can be used at the borrower's discretion and not tied to a specific purpose. See also consumer credit.
(2) Credit granted to a private person for non-commercial purposes solely on the basis of that person's creditworthiness, income and financial circumstances. See also unsecured credit.
(3) Loan granted to private persons for non-commercial purposes, e.g. consumer credit. The amount and term of a personal loan depend on the needs of the borrower.
personal loan company / Privatkreditinstitut / établissement de crédit privé / istituto di credito privato
Credit institution specializing in granting personal or consumer loans and financing instalment purchasing (hire purchase in UK).
Ph
phone banking / Phone-Banking / phonebanking / phone banking
Also: telephone banking. Service offered to customers to check the status of their accounts or issue payments or stock market orders over the phone as part of a comprehensive service package available 24 hours a day. See also electronic banking.
Pi
pillar 3a / Säule 3a / prévoyance liée / pilastro 3a
Component of Switzerland's three-pillar pension system. While contributions to pillar 1 (state pension) and minimum provisions under pillar 2 (occupational pensions) are required by law (compulsory savings), pillar 3 pension plans are optional private schemes. They are divided into pillar 3a schemes (tax-privileged) and pillar 3b schemes (unrestricted access savings). For persons in gainful employment, payments into pillar 3a schemes are tax-privileged up to an annual maximum.
PIN / PIN-Code / code NIP / codice PIN
Abbr. for personal identification number, and also referred to ungrammatically as PIN number or PIN code. Personal alphanumeric code for the electronic identification of a customer using an account card, e.g. to withdraw cash from an ATM.
Pl
place of payment / Zahlungsort / lieu du règlement / luogo di pagamento
Also: place of performance. Place where the debtor is to fulfil his/her obligation to pay.
placement commission
Synonym for selling commission.
placement on commission / kommissionsweise Platzierung / placement à la commission / collocamento su commissione
The placement of securities by the issuer at his/her own risk. The banks act as subscription agents and obtain a placement commission for any subscriptions effected through their efforts. See also: firm underwriting.
plain vanilla bond / Plain-Vanilla-Bond / obligation «plain vanilla» / plain vanilla bond
Bond issued without conversion or warrant clauses but with a fixed term to maturity, fixed interest rate, regular interest payments on dates specified in advance and unconditional repayment of the bond amount at maturity. See straight bond. «Plain vanilla» is also used in connection with other financial products (e.g., options, swaps) to indicate a standard form without special characteristics.
plastic money / Plastikgeld / monnaie plastique / moneta di plastica
Slang term for all plastic cards, such as VISA, MasterCard and Maestro card, used to make cashless payments.
platinum
See precious metals.
pledge / Verpfändung / nantissement / costituzione in pegno
Transfer of assets to secure payment of an obligation, but generally without transfer of title or ownership, on the basis of a pledge agreement. In the event of default, the creditor can realize the pledged assets and satisfy his claims from the proceeds (execution). In the banking business, pledging securities is the most common credit collateralizing transaction, especially in the case of current account credits and loans. See also Lombard loan, collateral loan.
pledged collateral / Faustpfand / gage / pegno manuale
Valuable assets, such as securities, merchandise, etc., deposited and pledged as security for the repayment of a loan.
Pm
PMI
Abbr. for Purchasing Managers' Index.
Po
point of sale
See POS terminal.
poison pill / Poison-Pill / poison pill / poison pill
Poison pills are any type of defensive maneouvre which a company might try in order to protect itself against unwanted takeover bids, e.g. stock issues, special distributions, spin-offs and management pay-outs.
pool / Pool / pool / pool
A community of persons or companies with common interests which combine to carry out common measures, contribute to a common fund of resources or further a common effort. The rights and duties of pool members are usually governed by a contract. Examples: gold pool, shareholders' pool.
pooled vehicles aggregierte Anlageinstrumente / instruments d'investissement collectif / strumenti d'investimento collettivo
A pooled vehicle aggregates capital on behalf of smaller investors wishing to participate in investments not otherwise accessible to them.
portfolio / Portfolio / portefeuille / portafoglio
(1) Holdings of bills and similar paper managed or administered by a bank.
(2) A pool of investments owned by an individual or an organization. The portfolio can either be managed by the owner him/herself or by a professional portfolio manager. Totality of securities held by banks in custody for clients or for own account.
(3) All securities owned by a person or company.
portfolio analysis / Depotanalyse / analyse de portefeuille / analisi di portafoglio
Analysis of the securities in a safekeeping account according to market value, income as well as the risk distribution by industry, country and currency. The portfolio analysis is part of the advisory service and asset management.
portfolio efficiency
see efficiency
portfolio investment / Portfolio-Investition / investissement de portefeuille / investimento di portafoglio
Investments in tradable securities and book-entry securities of foreign issuers. The key motivation is to earn a return and not to exert an influence on the company's business operations. Examples include foreign bonds, money market paper, equities and fund units. Investments in derivatives are not generally regarded as portfolio investments these days.
portfolio management / Vermögensverwaltung / gestion de fortune / gestione patrimoniale
Also: asset management, wealth management. The management of a portfolio or certain assets by a portfolio manager assigned this function on the basis of a management mandate. The banks perform portfolio management services in connection with their custody activities. See also managed account, sealed safekeeping account, open safekeeping account.
portfolio mortgage / Portfolio-Hypothek / prêt hypothécaire Portfolio / ipoteca Portfolio
Adjustable-rate mortgage split into several fixed-rate mortgages each of which is renewed on maturity for the same term. The rate of interest on a portfolio mortgage is calculated as a moving average of the rates on the component fixed-rate mortgages. The advantage is that the rate of interest is smoothed out, with minimized risk of fluctuation.
portfolio representative / Depotvertreter / représentant dépositaire / rappresentante di titoli in deposito
Bank or professional asset manager who exercises the voting rights arising from shares under its custody or management in accordance with the instructions of the shareholder. The portfolio representative must request instructions from the shareholder prior to each annual general meeting (OR 689d).
portfolio valuation / Depotbewertung / estimation de portefeuille / valutazione del deposito
Valuation of all securities held in a safekeeping account at current market or taxable value prices. See also portfolio analysis.
POS terminal / POS-Terminal / terminal point de vente / terminale POS
End-device that can be used when making cashless payments for goods and services in shops. The funds can be debited directly from the customer's account (e.g. when using a Maestro card with PIN). POS stands for point of sale.
position / Position / position / posizione
In derivatives or securities trading, a particular investment that is entered into in a security. See long position, short position.
positive correlation / positive Korrelation/ corrélation positive / correlazione positiva
See correlation.
Positive Screening / Positive Screening / Sélection positive / Filtro positivo
SRI approach that invests in leading companies with regard to environmental, social or governance criteria. The focus lies on how a company’s strategies, processes and products impact financial success, the environment and society. Forms of positive screening include:
Best-in-class approach, Thematic approach
possessory lien / Retentionsrecht / droit de rétention / diritto di ritenzione
The legal right to retain property until a claim is met. Possession must be continuous, rightful and not for a particular purpose. Regulated in Switzerland by 895 ff. of the Swiss Civil Code.
postal check / Postcheck / chèque postal / assegno postale
Special order used by the holder of a postal checking account to dispose over the balance in his account and make payments.
postal giro transfer / Postgiro / virement postal / postagiro
Cashless transfer of money between different postal checking accounts.
postal money order / Postanweisung / mandat postal / vaglia postale
Instrument used for paying (transferring) money to a person or entity that does not maintain a postal checking account.
postal payment order / Zahlungsanweisung / assignation de paiement / disposizione di pagamento
In Switzerland: an order by the owner of a postal checking account to make payment to a beneficiary who himself is not a postal checking accountholder. It is also possible nowadays to use an assignment cheque for such purposes.
Postcard / Postcard / Postcard / Postcard
A card issued by Switzerland's PostFinance that can be used to withdraw cash (worldwide), or as a form of payment at shops, restaurants, gas stations, etc. (within Switzerland).
post-market trading / nachbörslicher Handel / après Bourse / dopoborsa
Also: after-hours trading. Unofficial securities trading after the close of a stock exchange. Normally takes place between banks via electronic information systems. See also over-the-counter trading.
Pr
practices / Usanz / usance / uso
Customs or practices in trading or business that have become established over the years, e.g. stock exchange practice.
precious metals / Edelmetalle / métaux précieux / metalli preziosi
Collective term for the elements gold, silver as well as the group of platinum metals: platinum, palladium, iridium, rhodium, osmium and ruthenium. Precious metals are characterized by their chemical durability, valuable physical properties and attractive appearance. Only gold, silver, platinum and palladium are used for capital investments; they are traded worldwide around the clock in spot and forward markets. Precious metal options serve as hedging instruments.
precious metals & commodities / Edelmetalle und Rohwaren / métaux précieux et matières premières / metalli preziosi e materie prime
In terms of asset class: investments with risk exposure to the precious metals or commodities markets, i.e. markets where raw materials are traded. Precious metals & commodities primarily include agricultural and mining products, as well as energy .
preferred claim under bankruptcy
Synonym for senior claim.
pre-opening / Voreröffnung / préouverture / preapertura
On Swiss Exchange: period between the close of trading on a given trading day and the opening of trading on the following trading day. During this period, orders may be entered into the order book but will not be matched.
pre-trade transparency
The
MiFID requirement for regulated markets and MTFs to publish current bid and offer prices for shares and the depth of trading interest at those prices. MiFID also introduces a new requirement for systematic internalisers to publish firm quotes in liquid shares which they systematically internalize.
price / Kurs / cours / corso
Securities and merchandise are quoted at a market or selling price. Foreign exchange is quoted in rates, not prices.
price for tax purposes / Steuerkurs / cours fiscal / corso fiscale
The price of a security for tax purposes. The Swiss Federal Tax Administration compiles a list with the taxable values for a wide range of securities, and these are binding for tax assessment purposes. In Switzerland, the price for tax purposes corresponds to the average of the prices recorded in December.
price rally
Synonym for rally.
price stabilization / Kurspflege / soutenir le cours / sostegno della quotazione
Prevention of accidental large-scale fluctuations in the prices of shares or bonds by selling such securities in the event of excessive price rises and purchasing them when prices come under extremely heavy pressure. See also support purchase.
price/book value / Kurs-Buchwert-Verhältnis / rapport cours/valeur comptable / rapporto prezzo/valore contabile
Abbr. P/B. The ratio of the stock market price to the book value per share. If the value is below 1, this suggests the share is undervalued.
price/cash flow ratio / Kurs/Cashflow-Verhältnis / rapport cours/cash-flow / rapporto prezzo/cash-flow
Ratio of the share price to the cash flow of a company. The price of the share is divided by the cash flow per share. See also: price/earnings ratio.
price/earnings ratio / Kurs-Gewinn-Verhältnis / rapport cours/bénéfice / rapporto prezzo/utili
Abbr. P/E or PER. Relationship (ratio) of the share price to the net profit of a company. It is calculated by dividing the market price of the shares by the earnings per share. The price/earnings ratio is one of the most widely used indicators for the assessment of stocks.
prime letter of credit
See back-to-back documentary credit.
prime rate / (1) Leitzins (2) Prime Rate / prime rate / prime rate
(1) Synonym for key interest rate.
(2) The rate of interest charged by US/Canadian banks for first-class or prime short-dated commercial paper.
principal bank
See house bank.
private bank / Privatbank / banque privée / banca privata
Banking institution in private hands (as opposed to public sector banks, e.g. Swiss cantonal banks and German Landesbanken), where the owner or partners are liable with their personal assets. Under Swiss law, the expression «private bank» theoretically refers only to institutions with the legal form of an individual proprietorship, partnership firm or limited partnership. They exist primarily in Geneva, Basel and Zurich.
private banker / Privatbankier / banquier privé / banchiere privato
In Switzerland: Private bankers are the owners or partners of a private bank, as defined by the Swiss Banking Act, who are liable with their personal assets. The term is a protected mark. SNB statistics show that there are still 15 such banking institutions in Switzerland. The private bankers are organized into the Swiss Private Bankers Association.
private banking / Private Banking / private banking / private banking
Investment counselling and portfolio asset management services offered to international private and institutional clients.
private clients
Those bank clients who do not qualify for professional or eligible counterparty status. Private clients, or retail clients as they are named under MiFID, are generally considered to be the least sophisticated and are given the most protection. They are required to demonstrate to the firm that they are transacting with the necessary knowledge and experience to understand the risks associated with the transaction. There is also a greater administrative burden associated with private respectively retail categorization for both firms and clients.
private discount rate
Synonym for prime rate, market discount rate.
private equity / Private Equity / private equity / private equity
Privately negotiated transactions in public or private companies with a view to increasing their value in order to exit from the investment at the desired point in time. Private equity firms can invest in companies at various stages of their development, from financing startups (venture capital), through providing capital to rapidly growing businesses (growth capital) to leveraged buyouts of mature businesses (buyouts).
private equity finance / Beteiligungsfinanzierung / financement par prise de participations / finanziamento di partecipazioni
Equity financing provided by the bank to newly established or fast-growing companies with a sound credit rating.
private equity investing
Synonym for merchant banking.
private placement / Privatplatzierung / placement privé / collocamento privato
(1) In Switzerland: the sale of medium-term notes, which were formerly only placed privately. Under current legislation, an issue prospectus has to be published.
(2) On the Euromarket: the placing of short to long-dated notes with a select group of investors (international private placements).
pro-cyclical / prozyklisch / procyclique / prociclico
Trading in accordance with a trend. As a share rises, procyclical investors follow the herd, buying the share to benefit from the trend momentum. Opposite: anticyclical.
productivity / Produktivität / productivité / produttività
A measure of the efficiency of production in a company or an economy.
professional clients
Bank clients who meet the professional criteria set out in MiFID, including credit institutions, investment firms, pension funds and their management companies, and other institutional investors. Certain private clients may also qualify for professional status if they meet specific quantitative and qualitative criteria. Professional clients are considered to possess the experience, knowledge and expertise to make their own investment decisions and properly assess the risks they incur. They obtain an intermediate level of protection under MiFID and gain the benefit of conduct of business provisions relating to best execution and order handling.
professional traders / Berufshandel / opérateurs professionnels / operatori professionali
Banks and brokers directly active in the securities markets.
profit / Gewinn / bénéfice / utile
The income remaining after deduction of all expenses during a specific period. In the case of banks, total income less interest paid is considered gross operating earnings, whereas total gross income minus all operating and non-operating expenses is called the net or clear profit. The disposable net profit consists of the net profit for the year plus any surplus carried forward from the previous financial year.
profit and loss account (GB); income statement (USA) / Gewinn- und Verlustrechnung / compte de pertes et profits / conto profitti e perdite
A statement detailing and balancing the expense items and income items of a company for the past financial year.
profit warning / Gewinnwarnung / avertissement sur bénéfices / allarme sugli utili
Announcement that a company's expected profits are likely to be less than forecast.
profitability / Rentabilität / rentabilité / redditività
Also: return on equity. The success of a company measured in relation to the capital employed.
profit-taking / Gewinnmitnahme / prise de bénéfice / presa di beneficio
Realizing a stock market profit by either selling the securities at a price which is higher than the cost price or, in the case of a short sale, by repurchasing the securities at a price which is lower than the selling price.
project finance / Projektfinanzierung / financement de projets / finanziamento di progetti
Complex financing programme for an independent economic unit. The companies behind the project bear only part of the risk, collateral is restricted to project assets, and debts are paid exclusively out of the project cash flow. Financing is usually for major projects and is provided by international banking consortiums.
prolongation / Prolongation / prorogation / proroga
Also: renewal. Extension of the maturity or running period of a transaction or an order. If a stock exchange transaction is not executed at the performance date as agreed but further extended, the act of postponement is known as a prolongation (carry-over transaction). Postponing the due date of a bill is called bill renewal or prolongation.
promissory note / Eigenwechsel / billet à ordre / pagherò
Written unconditional promise to pay, issued and signed by the debtor himself. The latter undertakes to pay on demand at a fixed or determinable future date a certain sum of money to the order of a specified person, or to bearer.
promissory note issued as security / Kautionswechsel / effet de garantie / cambiale data in cauzione
Promissory note or bill of exchange issed to secure an obligation. Enables summary bill enforcement procedure in the case of non-performance by the debtor.
proportionate consolidation / Quotenkonsolidierung / consolidation proportionnelle / consolidamento proporzionale
In contrast to full consolidation, a method whereby the results of subsidiaries are consolidated in the group accounts on a pro rata basis according to the size of the group's equity interest. Proportionate consolidation is used in particular for the consolidation of joint ventures.
prospectus / Prospekt / prospectus / prospetto
A document issued by a company or public authority planning to float a bond or shares. As well as describing the modalities of the issue, the profit outlook and the securities to be issued, it also contains an invitation to subscribe. See also prospectus liability.
prospectus liability / Prospekthaftung / responsabilité des auteurs du prospectus / responsabilità degli autori di programmi e manifesti
Liability towards shareholders and bondholders on the part of the authors and corporate bodies drafting a prospectus. Legislation in many countries embraces all losses caused by intentionally or negligently supplying inaccurate information or information which fails to meet the legal requirements.
protest / Protest / protêt / protesto
Synonym for protest of a bill of exchange.
protest of a bill of exchange / Wechselprotest / protêt d'effet de change / protesto cambiario
Formal written notice that the payer has refused to make payment. The bearer of a bill of exchange files such a protest in cases where the payer cannot honour a bill on the due date and cannot obtain a prolongation from the issuer. This protest gives the bearer of the bill the right to demand payment of the amount of the bill, interest since the due date, protest costs and other expenses as well as compensation from a previous owner or the issuer by way of recourse to the endorser.
provisions / Rückstellungen / provisions / accantonamenti
Liability items in the balance sheet charged to the profit and loss account to cover future liabilities or anticipated losses. Frequently listed under other liabilities in the balance sheet. Provisions for risks in the lending business and in foreign exchange trading are of particular significance for banks. Specific provisions are set aside to cover particular risks, while contingency (del credere) reserves or provisions cover general expected losses which cannot yet be specified in detail. Contrary to reserves, provisions are not allocated from the net profit but from operating profit.
proxy / Vertretungsvollmacht / pouvoir de représentation / procura
Authorization to represent a client on the basis of a power of attorney.
proxy voting by custodians on behalf of customers whose shares they keep / Depotstimmrecht / droit de vote des actions en dépôt / diritto di voto per azioni in deposito
Proxy voting right exercised at annual general meetings by the custodian bank on the basis of a power of attorney. See also proxy.
Pu
public company
Also: company limited by shares. Legal entity whose equity is publicly traded (mostly in the form of shares) and which is as a rule listed on one or several stock exchanges.
public offer / öffentliches Kaufangebot / offre publique d'achat (OPA) / offerta pubblica di acquisto
Under the Swiss Stock Exchange Act, buyers acquiring more than one-third of the voting rights of a listed company via a takeover are required to offer to buy the shares of all other shareholders at the same price. Companies can make a provision in their articles of association opting out of this requirement or increasing the threshold to 49% (opting up).
public sector bond
Synonym for government bond.
Purchasing Managers Index / Einkaufsmanagerindex / indice des directeurs d'achat / indice dei direttori d'acquisto
Survey of purchasing managers of various companies in different sectors conducted and published on a monthly basis. The Purchasing Managers Index is regarded as a leading indicator for economic trends. In the US the ISM index (or Purchasing Managers Index PMI) is produced and published by the Institute for Supply Management (ISM). In addition, since 1997 the ISM also publishes the Purchasing Managers Index service sector; in the Eurozone a Purchasing Managers Index is published by Reuter's.
purchasing power / Kaufkraft / pouvoir d'achat / potere d'acquisto
The number of units of one or several types of goods that can be exchanged for one unit of money. In simpler terms, purchasing power is the ratio between money and goods, or how much money will buy in a specific country.
purchasing power parity / Kaufkraftparität / parité du pouvoir d'achat / parità del potere d'acquisto
Abbr.: PPP. «Effective» external value of a currency determined by comparing different countries' relative price levels. For example, a basket of goods costing USD 100 in the United States and CHF 160 in Switzerland would give a parity rate of CHF 1.60 per USD. Proponents of PPP theory hold the view that an exchange rate will move in the direction of purchasing power parity over the long term or at least reflect the differing price trends.
put / Put / option de vente / put
Also: put option. An option that confers on the buyer the right to sell the underlying. Opposite: call.
put and call option / Stellagegeschäft / stellage / stellage
Option transaction where the buyer of securities obtains the right, in exchange for a premium specified in advance, to demand delivery of the securities at a higher price agreed upon when the contract was made or to deliver them at a specified lower price. Put and call options are in some regards comparable with a straddle.
put on / anziehen / grimper / lievitare
Common stock market term for «to rise», e.g. of securities or currencies. See also bull market.
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