Investor Definitions

PREPAYMENT

The unscheduled partial or complete payment of the principal amount outstanding on a loan, such as a mortgage, before it…

5 years ago

PREPAID TUITION PLANS

A type of 529 plan that lets an account owner purchase units or credits at participating colleges or universities for…

5 years ago

PREMIUM

The amount by which the price of a bond exceeds its principal (par) amount.

5 years ago

PORTFOLIO

The combined holdings of stock, bond, commodity, real estate and other investments by an individual or institutional investor.

5 years ago

PONZI SCHEMES

A Ponzi scheme is an investment fraud that pays existing investors with funds collected from new investors. Ponzi schemes are…

5 years ago

PIPE OFFERINGS

“PIPE” stands for “private investment in public equity.” In a PIPE offering, investors commit to purchase a certain number of restricted…

5 years ago

PENSION

Defined benefit plans also are known as pension plans. Employers sponsor defined benefit plans and promise the plan's investments will…

5 years ago

OTC BULLETIN BOARD (OTCBB)

The OTC Bulletin Board (OTCBB) (link is external) is an electronic quotation system that displays real-time quotes, last-sale prices, and volume information…

5 years ago

OPTIONS

Options are contracts giving the purchaser the right – but not the obligation -- to buy or sell a security…

5 years ago

OPERATING EXPENSES

The costs a fund incurs in running the fund, including management fees, distribution fees, and other expenses.

5 years ago