Business Terms and Definitions (P and Q)
Paralegal: An individual who is not licensed to practice law but assists attorneys in certain activities that are associated with law.
Par Value: The dollar amount of a security that is repaid to an investor at the date of maturity. It may also be the face value of a bond or the official rate of exchange of a currency note.
Partnership: A business arrangement in which two or more persons voluntarily agree to share profits as well as unlimited liability from a single business. Each partner is liable for the debts of the partnership as a whole, yet each partner is taxed individually.
Passive Income: Defined as income generated by passive activities which includes trades or business ventures in which an individual does not actively participate, such as involvement in a limited partnership.
Patent: A right or an authority granted by the federal government to make, use, or sell an invention of a unique device or process. A patent is issued for a specified period of time, usually twenty years.
Penny Stocks: Stocks that are issued at low prices, usually selling for less than a dollar a share. Also called an over the counter stock, they do not meet NASDAQ requirements. Brokers and dealers are forbidden by law to solicit penny stock orders, although customers may enter orders on their own.
Pension: A periodic payment to an individual after certain conditions are met, normally age and a required number of years on a job. A pension fund is set up to collect regular contributions to provide retirement income for employees.
Per Annum: Calculations made yearly or through the year.
Per Capita: Calculations made by individual head count and divided equally amongst those involved.
Personal Identification Number (PIN): A number given to an individual, unique in nature, to gain authorized access to computer controlled machines like automated tellers, online banking, and security locks.
Personal Property: Property that is not affixed to land and is movable. Some things that are attached to land or real estate can be considered personal property if it can be moved without doing irrevocable damage, such as a mobile home or shed.
Preferred Stock: A security with a fixed dividend that is affected by interest rate swings. Dividends are paid to preferred stockholders before common stock holders.
Prepayment Penalty: A percentage of a mortgage charged to a borrower, by the lender, if the loan is paid in totality before a specified time.
Prime Rate: The interest rate that a commercial bank charges it's most creditworthy customers for unsecured loans. Smaller banks usually follow suit for their loans on homes, automobiles, and small businesses.
Progressive Tax: A taxing strategy in which tax distribution is based on the premise that higher income earners pay a higher percentage of their disposable income while lower income earners pay less. In theory, the tax rate progresses from lower to higher.
Portfolio: A combined group of loans, bonds, stocks, or other assets held by an individual or a company.
Qualified Plan: A plan set up by corporations or individuals that must meet IRS guidelines in regards to retirement. A Qualified Plan must meet specified criteria for the benefit of employees and their beneficiaries along with requirements for tax deductibility.
Quitclaim Deed: A legal instrument that transfers all rights to title and interest in real property but gives no assurances that the title is free of liens or other encumbrances.
Quote: The highest bid to buy and the lowest offer to sell stocks, bonds, or other assets in the market at any given time.
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