Investopedia

Financial Theory Terms

  1. Personal Income And Outlays

  2. Peter Principle

  3. Phantom Gain

  4. Piecemeal Opinion

  5. Planned Obsolescence

  6. Population

  7. Portable Alpha

  8. Porter Diamond

  9. Porter's 5 Forces

  10. Portfolio Lender

  11. Post-Modern Portfolio Theory - PMPT

  12. Poverty

  13. Power-Distance Index - PDI

  14. Pre-Funded Bond

  15. Predatory Pricing

  16. Preferred Creditor

  17. Prepayment Model

  18. Prepayment Privilege

  19. Present Value - PV

  20. Present Value Interest Factor - PVIF

  21. Price Ceiling

  22. Price Efficiency

  23. Price Level

  24. Price Level Targeting

  25. Price Risk

  26. Price Skimming

  27. Price Stickiness

  28. Price Tension

  29. Price-Taker

  30. Price-To-Research Ratio - PRR

  31. Principal-Agent Problem

  32. Prisoner's Dilemma

  33. Private Equity

  34. Private Good

  35. Pro-Rata Tranche

  36. Probability Distribution

  37. Problem Child

  38. Process Value Analysis - PVA

  39. Product Placement

  40. Production Volume Variance

  41. Productivity

  42. Profit/Loss Ratio

  43. Profitability Index

  44. Project Finance

  45. Proportional Spread

  46. Protest Divestment

  47. Public Good

  48. Pump Priming

  49. Purchase Fund

  50. Purchasing Managers Index - PMI

  51. Purchasing Power Loss/Gain

  52. Purchasing Power Parity - PPP

  53. Pure Risk

  54. Push On A String

  55. Put-Call Parity

  56. Pyramiding

  57. Q Ratio (Tobin's Q Ratio)

  58. Quantitative Easing

  59. Quantity Demanded

  60. Quartile

  61. R-Squared

  62. Radner Equilibrium

  63. Ragnar Frisch

  64. Random Variable

  65. Random Walk Theory

  66. Rate Level Risk

  67. Rate Of Return

  68. Rational Behavior

  69. Rational Pricing

  70. Real Bills Doctrine

  71. Real Estate Mortgage Investment Conduit - REMIC

  72. Real Option

  73. Recognition Lag

  74. Recoupling

  75. Recursive Competitive Equilibrium - RCE

  76. Refi Bubble

  77. Reflexivity

  78. Regression

  79. Regulatory Risk

  80. Reinvestment Risk

  81. Remittance Float

  82. Renewable Resource

  83. Rescaled Range Analysis

  84. Research Analyst

  85. Reservable Deposit

  86. Residual Dividend

  87. Response Lag

  88. Revealed Preference

  89. Reverse Survivorship Bias

  90. Ricardo-Barro Effect

  91. Ringfencing

  92. Ripple

  93. Risk Analysis

  94. Risk Assessment

  95. Risk Curve

  96. Risk Lover

  97. Risk Management

  98. Risk Neutral

  99. Risk Parity

  100. Risk Premium

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Hot Definitions
  1. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.
  2. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.
  3. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.
  4. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.
  5. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
  6. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
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