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Principal Amount

The face value (par value) of an investment/ security/ instrument, etc. It is the original/ initial stated amount that is...

Purchasing Power Risk

A type of risk that arises from the negative effect of inflation on purchasing  power. Inflation is a upward movement...

Pure Discount Bond

Also discount bond. By definition it is a bond that accrues interest over its life. Accrued interest is only payable...

PC

It stands for participation certificate; a form of compound financial instrument that gives it holders the right to share in...

Participation Certificate

A form of compound financial instrument that gives it holders the right to share in the distributable profits of an...

Pass-Through

A security (a mortgage-backed security, MBS) that is created from pooling mortgages (mortgage loans, as underlying) and sells shares or...

Par Value Stock

A stock (share of stock) that has an arbitrary value established in the articles (charter) of its issuer (i.e., the...

Participation Instrument

An instrument that allows investors to participate in the return of a specific underlying asset. Participation is often up to...

Participating Instrument

An instrument that allows investors to participate in the return of a specific underlying asset. Participation is often up to...

Pipeline

A pipeline or mortgage pipeline describes mortgages that are in the process of being originated. Origination involves creating a loan...