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Pre-IPO
When a portion of an initial public offering (IPO) is placed with private investors right before the IPO is scheduled to hit the market. Typically, these private investors in a pre-IPO placement are large private equity or hedge funds that are willing to buy a large stake in the company. The size of the investment means the price paid for shares in a pre-IPO placement is usually less than... -
Precious Metals
A classification of metals that are considered to be rare and/or have a high economic value. The higher relative values of these metals are driven by various factors including their rarity, uses in industrial processes and use as an investment commodity.Precious metals include, but are not limited to: gold, silver, platinum, iridium, rhodium and palladium. (Source: Investopedia) -
Preferred Dividend
A dividend that is accrued and paid on a company’s preferred shares. In the event that a company is unable to pay all dividends, claims to preferred dividends take precedence over claims to dividends that are paid on common shares. Preferred stock will typically pay much higher dividend rates than common stock of the same company. This is the main benefit of owning preferred shares. (Source: Investopedia) -
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 also tend to be less volatile than the prices of common stock. In fact, preferred stock prices tend to move with changing interest rates in the same way that bond prices do. That’s one reason this type of stock... -
Premium to NAV
A mutual fund, closed end fund or ETF whose share price is higher than fund’s net asset value (NAV). The occurrence of significant premiums or discounts with ETFs is rare, whereas with closed end funds it’s common. (Source: ETF Guide) -
Private Debt
Money owed by individuals and organizations other than governments (Source: QFINANCE) -
Private Equity
Private equity is an umbrella term for large amounts of money raised directly from accredited individuals and institutions and pooled in a fund that invests in a range of business ventures. The attraction is the potential for substantial long-term gains. The fund is generally set up as a limited partnership, with a private equity firm as the general partner and the investors as limited partners. Private equity firms typically... -
Put
An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time. The buyer of a put option estimates that the underlying asset will drop below the exercise price before the expiration date. When an investor purchases a put, he or she expects the underlying asset will decline in price. The investor... -
Qualified Default Investment Alternative
The QDIA regulations provide a safe harbor for the investment of participant contributions in the absence of an affirmative investment election by the participant. (Source: Graf & Stiebel)
