Related Words

Qualifying Stock Option: A benefit granted by a corporation that allows employees to purchase shares at a discount price.

Incentive Stock Option (ISO): Corporate executives may be granted incentive stock options (ISOs), also called qualifying stock options. These options aren't taxed when they're granted or exercised, but only when the unde . . . View Full Definition

Phantom Stock Plan: An incentive scheme that awards management bonuses based on increases in the market price of the company's stock.

Performance Stock: High-growth stock in a company that retains earnings for further growth and therefore pays no dividends, but that an investor feels has significant future potential.

Path-Dependent Option: An option whose value depends on the sequence of prices of the underlying asset rather than just the final price of the asset.

Penny Stock: Stocks that trade for less than $1 a share are often described as penny stocks. Penny stocks change hands over-the-counter (OTC) and tend to be extremely volatile. Their prices may spike up . . . View Full Definition

Philadelphia Stock Exchange (PHLX): A securities exchange trading American and European foreign currency options on spot exchange rates.

Philippine Stock Exchange: Stock exchange based in the Philippines, which operates two trading floors, at Manila and Makati.

Preferred Stock: Some corporations issue preferred as well as common stock. Preferred stock can be an attractive investment because it typically pays a fixed dividend on a regular schedule. The share prices . . . View Full Definition

Preferred Equity Redemption Stock (PERC): Preferred stock that converts automatically into equity at a stated date. A limit is placed on the value of the shares the investor receives.