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Par ValueSee nominal value.
Parent CompanyCompany which controls one or more subsidiaries in a group.
PartnershipTwo or more persons in business together with the aim of MAKING A PROFIT.
Partnership DeedA document setting out the agreement of the partners on how the partnership is to be conducted (including the arrangements for sharing profits and losses).
Partnership LawLegislation which governs the conduct of a partnership and which should be used where no partnership deed has been written.
Portfolio (of Investment)A collection of investments.
Portfolio of SharesA collection of shares held by an investor.
Preference SharesShares in a company which give the holder a preference (although not an automatic right) to receive a dividend before any ordinary share dividend is declared.
Preliminary AnnouncementThe first announcement by a listed company of its profit for the most recent accounting period. Precedes the publication of the full annual report.
The announcement is made to the entire STOCK MARKET so that all investors receive information at the same time.
PremiumAn amount paid in addition, or extra.
PrepaymentAn amount paid for in advance for an benefit to the business, such as insurance premiums or rent in advance. Initially recognised as an asset, then transferred to expense in the period when the benefit is enjoyed. (Also called a prepaid expense.)
Present FairlyA condition of the IASB system, equivalent to true and fair view in the UK ASB system.
Price–Earnings RatioMarket price of a share divided by earnings per share.
Price-Sensitive InformationInformation which, if known to the market, would affect the price of a share.
Primary Financial StatementsThe balance sheet, profit and loss account, statement of total recognised gains and losses and cash flow statement.
Principal (Sum)The agreed amount of a loan, on which interest will be charged during the period of the loan.
Private Limited Company (Ltd)A company which has limited liability but is not permitted to offer its shares to the public.
Production Overhead CostsCosts of production that are SPREAD across all output, rather than being identified with specific goods or services.
ProfitCalculated as revenue minus expenses.
Profit and Loss AccountFinancial statement presenting revenues, expenses, and profit. Also called income statement.
Prospective InvestorAn investor who is considering whether to invest in a company.
ProspectusFinancial statements and supporting detailed descriptions published when a company is offering shares for sale to the public.
ProvisionA liability of uncertain timing or amount.
Provision for Doubtful DebtsAn estimate of the risk of not collecting full payment from credit customers, reported as a deduction from TRADE receivables (debtors) in the balance sheet.
PrudenceA degree of caution in the exercise of the judgements needed in making the estimates required under conditions of uncertainty, such that gains and assets are not overstated and losses and liabilities are not understated.
Public Limited Company (PLC)A company which has limited liability and offers its shares to the public.
Purchase MethodMethod of producing consolidated financial statements (see acquisition method).
PurchasesTotal of goods and services bought in a period.