Business / Finance Glossary

Purchase: Buy; be long; have an ownership position.

Purchase Accounting: Method of accounting for a merger that treats the acquirer as having purchased the assets and assumed the liabilities of the acquiree, which are then written up or down to their respective f . . . View Full Definition

Purchase Agreement: Used in connection with project financing; an agreement to purchase a specific amount of project output per period.

Purchase And Sale: A method of securities distribution in which a firm purchases securities from the issuer for its own account at a stated price and then resells them, as contrasted with a best-efforts sale.

Purchase Fund: Resembles a sinking fund, except that money is used to purchase bonds only if they are selling below their par value.

Purchase Loan: A consumer loan taken to finance a purchase.

Purchase Method: Accounting for an acquisition using market value for the consolidation of the two entities' net assets on the balance sheet. Generally, depreciation/amortization will increase for this metho . . . View Full Definition

Purchase Order: A written order to buy specified goods at a stipulated price.

Purchase-Money Mortgage: A mortgage given by a buyer in lieu of cash when the buyer is unable to borrow commercially for the purchase of property.

Purchases Of PP and E: The acquisition cost of new property, plant and equipment assets in a given year, minus the proceeds from the sale of existing PP&E. See also depreciation.

Purchasing Power: The amount of credit available for securities trading in a margin account, after taking margin requirements into consideration.

Purchasing Power Of The Dollar: The amount of goods and services that can be exchanged for a dollar as compared with amount of a previous time period.

Purchasing Power Parity: The notion that the ratio between domestic and foreign price levels should equal the equilibrium exchange rate between domestic and foreign currencies.

Purchasing Power Risk: Related: Inflation risk

Pure Discount Bond: A bond that will make only one payment of principal and interest. Also called a zero-coupon bond or a single-payment bond.

Pure Expectations Theory: A theory that asserts that forward rates exclusively represent the expected future rates. In other words, the entire term structure reflects the market's expectations of future short-term ra . . . View Full Definition

Pure Index Fund: A portfolio that is managed so as to perfectly replicate the performance of the market portfolio.

Pure Monopoly: A market in which only one firm has total control over the entire market for a product due to some sort of barrier to entry for other firms, often a patent held by the controlling firm.

Page: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314