Financial Dictionary


Pac Man

A defensive strategy, used in the case of hostile takeover attempt. By using Pac Man, targeted company enforces reverse takeover and attempts to take over the hostile company.

Pacific Rim

Refers to 16 countries on the Far East embracing Pacific Ocean (Japan, Australia, Cambodia, Hong Kong, Singapore, New Zealand, Korea, Malaysia, Laos, Indonesia, Papua New Guinea, Philippines, Vietnam, Taiwan, Thailand and China).

Paid in Capital

The capital received from investors in exchange for stocks. Also called shared capital or contributed capital.

Painting The Tape

An illegal practice of manipulating the stock price. A group of traders buy the stocks and sell them among themselves, simulating high trading volume and investor’s interest. This can allure other investors to buy the stock from manipulators, enabling them to profit.


Palladium is a popular metal for industrial uses as the product is generally cheaper than platinum while at the same time being softer while still being ductile and resistant to rust. Due to this resistance, the metal has become a popular choice for autos in order to help carmarkets keep down on harmful emissions. Palladium […]

Paper loss

A capital loss in an investment that has not been sold yet. If a stock has been fallen in value, investor experiences capital loss even if he had not sold the stock yet. Paper loss or profit is calculated by comparing current market price of a security and price in the moment of the purchase.

Paper Millionaire

Refers to a person with assets worth more than a million. Paper millionaires are not actually millionaires until they liquidate their securities for more than a million. There are cases when individuals bought their holdings which are bid up to higher prices in the future, and by waiting for them to bid more, they finished […]

Paper Profit

A rise in capital value that has not been realized yet. For example, if there is a rise in stock value, but the stock has not been realized, the investor will experience paper profit, or unrealized profit.

Paper Trading

Refers to simulated transactions, in order to improve theoretical and practical knowledge buy practicing.


A nominal dollar amount assigned to a security when first issued. In the case of stocks, par is usually a small value, but this value is only considered for proffered stocks, when par is used to calculate dividend payments. In the case of bonds, par is value on the face of the bond, which will […]

Parallel Loan

An agreement between two subsidiary companies, conducted in order to reduce foreign exchange risk. Buy using parallel loan, two companies borrow funds from their national financial institutions and then lend that money to each other.


A Latin term referring to two securities with the same obligations and rights. For a secondary issue of shares with the same rights like existing shares is said to be pari-passu.

Paris Club

A meeting of creditors and debtors from Europe and Russia. If a debtor nation is not able to meet its obligations, the renegotiation is arranged in Paris. Paris club often prescribes debt relief to developing nations.

Parity Price

A price that is directly linked to another price or average prices in the prior period, or even to a combination of prices.

Partial Release

A contracted release of some assets pledged as collateral in a mortgage if some conditions are met, usually after repaying certain percentage of the loan.

Partial Spinoff

Refers to selling minority stake in the child company by parent company. Parent companies will usually sell 20% or less in an IPO and the rest will sell at later date when prices are higher. Partial spinoff is also known as “carve out” or “equity carve out”.

Partial Surrender

The removal of a portion of cash from an insurance policy, which may lead to extra fee and total value reduction of the policy.

Participating Dividend

A dividend structure that allows extra dividend payouts to the preferred stockholders under certain circumstances. Participating dividend could result from a takeover or increased payout to common shareholders.

Participating GIC

A contract in which the policyholder will receive returns based on the performance of the portfolio, without any guaranteed amount.