Money Market Definitions - Starting with P

Here is the list of terms associated with the money market, starting with alphabet P

 

 

PLANS

The Scheme offers five Plans, Growth Plan and four Dividend Plans viz. Monthly, quarterly, Half Yearly and Annual Dividend Plans.

  

PORTFOLIO

The list of securities owned by the mutual fund. This list may be long, for example, Fidelity Magellan, with over 2000 stocks, or relatively short, for example, Sequoia, with only 16 stocks.

 

PORTFOLIO CHURNING

Switches between different stocks in the market, keeping in view the market conditions, in order to give unit holders a better yield.

 

PREMIUM

The amount by which a bond/ or a stock (in case of a IPO) sells above its par (face) value.

 

PRICE OF UNITS

Price offered by a mutual fund for repurchase or sale of a unit on a daily basis. Price/Earnings Ratio This is the price of a stock divided by its earnings per share. This ratio gives an investor an idea of how much they are paying for a particular company's earning power. A trailing P/E refers to a ratio that is based on earnings from the latest year, while a forward P/E uses an analyst's forecast of next year's earnings. For instance, a stock selling for Rs. 20 a share that earned Re. 1 last year has a trailing P/E of 20. If the same stock has projected earnings of Rs. 2 next year, then it has a forward P/E of 10.

 

PRICE STABILITY

Price stability protects the original amount you put into an investment. A mutual fund's price stability is seen in changes in its net asset value over time.

 

PRIMARY MARKET(NEW ISSUE MARKET)

The market on which newly issued securities are sold, including government security auctions and underwriting purchases of blocks of new issues, which are then resold.

 

PROSPECTUS

An official document that each investment company must publish, describing the mutual fund and offering its shares for sale. It contains information that has been mandatorily required by SEBI.

 

PURCHASE PRICE

Purchase Price to the investor of Units of any of the plans computed in the manner indicated in this Offer Document.

 

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