Related Words

Marginal Efficiency Of Capital: The percentage yield earned on an additional unit of capital.

Pecking-Order View (Of Capital Structure): The argument that external financing transactions costs, especially those associated with the problem of adverse selection, create a dynamic environment in which firms have a preference, or . . . View Full Definition

Payoff Pitch: A pitch thrown with a full count.

Payoff Diagram: In option pricing, a graph of the value of the option position at expiration as a function of the underlying asset price.

Payments In Lieu Of Taxes (PILT): A program administered by the Bureau of Land Management of the Department of the Interior to compensate counties for the tax-exempt status of federal lands: the fixed payments per entitlemen . . . View Full Definition

Penultimate Profit Prospect (PPP): The second-lowest-priced of the ten highest-yielding stocks in the Dow Jones Industrial Average that is said (by authors O'Higgins and Downes) to be the Dow stock with the best possibility o . . . View Full Definition

Perfect Capital Market: A market in which there are never any arbitrage opportunities.

Period Of Digestion: The time period of often high volatility after a new issue is released when the trading price of the security is established by the market.

Perfect Market View (Of Dividend Policy): Analysis of a decision on dividend policy, in a perfect capital market environment, that shows the irrelevance of dividend policy.

Perfect Market View (Of Capital Structure): Analysis of a firm's capital structure decision, which shows the irrelevance of capital structure in a perfect capital market.