Glossary
Partnership
Shared ownership of the enterprise among two or more individuals, each of whom is a shareholder and takes active part in the enterprise activity.
Pending order
Instruction to a Dealer to open position when the price has reached the order level.
Penny Stock
Stock that typically sells for less than $1 a share. These types of stocks are generally considered to be highly speculative and high risk because of their lack of liquidity, large bid-ask spreads and small capitalization.
Pit (Floor)
A specific area of the trading floor that is designed for the trading of commodities, individual futures, or option contracts.
Point, Pips
The smallest unit of a currency, securities or goods, one one-hundredth of a percent.
Premium
1. A bond sold above its par value.
2. The price of an option contract paid to the seller.
Profit
Total earnings less expenses. The amount one makes on a transaction.
Put option
This security gives investors the right to sell (or put) a fixed number of shares at a fixed price within a given period.
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