Primary Market

The primary market is where new securities are created and sold for the first time. Issuers — corporations, governments, or other entities — raise…

prima facie

• Fast fact: Prima facie (Latin, “at first sight”) describes evidence or a case that, on its face and unless rebutted, is sufficient to…

Price to Earnings (PE) Ratio

Introduction The price-to-earnings (P/E) ratio is one of the most widely used valuation metrics in equity analysis. It compares a company’s share price to…

Price to Book (PB) Ratio

Summary – The price-to-book (P/B) ratio compares a company’s market valuation of equity to the book value of its equity reported on the balance…

Price Leadership

Executive summary Price leadership occurs when one firm in an industry—because of size, market position, superior information, or tacit agreements—effectively sets the price that…

Price Elasticity of Demand

Price elasticity of demand (PED) measures how much the quantity demanded of a good or service changes in response to a change in its…

Price controls

• Price controls are legally mandated minimums (price floors) or maximums (price ceilings) set for specific goods or services, usually by governments. – They…

Price Ceilings

Overview — What is a price ceiling? – A price ceiling is a legally imposed maximum price that sellers may charge for a good…

Prepaid Expenses

Overview – Definition: A prepaid expense is a payment made in advance for goods or services that will be received in the future. Until…

preferred stock

Preferred stock is a class of equity that sits between bonds and common stock. Preferred shareholders generally receive priority over common shareholders for dividend…