Pro Rata
Pro rata (Latin: “in proportion”) refers to allocating an amount proportionally among participants, periods, or items relative to their share of the whole. Whenever…
Pro Forma
Pro forma financial statements are “what‑if” projections that show how a company’s financials might look under a hypothetical scenario (a planned transaction, budget change,…
Private Investment in Public Equity (PIPE)
Key takeaways – A PIPE (Private Investment in Public Equity) is when accredited or institutional investors buy shares directly from a publicly traded company…
Private Equity
Introduction Private equity (PE) is an alternative asset class in which investment firms raise capital from institutional and accredited investors to buy, manage, and…
Prisoners Dilemma
Key takeaways – The prisoner’s dilemma (PD) is a core model in game theory that shows how individually rational choices can produce a collectively…
Principal
Key Takeaways – Principal is the original amount of money borrowed, invested, or the face value of a bond; it excludes interest, fees, and…
Principal Interest Taxes Insurance (PITI)
Overview – PITI stands for Principal, Interest, Taxes, and Insurance. Together these four components typically make up the full monthly mortgage payment a borrower…
principal agent relationship
Executive summary – A principal–agent relationship is a legal, often fiduciary, arrangement in which one party (the agent) is authorized to act on behalf…
Prime Interest Rate
The prime interest rate (or “prime rate”) is the interest rate U.S. commercial banks charge their most creditworthy customers. It functions as a benchmark:…
Prime brokerage
• Prime brokerage is a bundled, institutional-grade set of services large investors (especially hedge funds) use to outsource trading operations, custody, financing and operational…