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Equities & Finance Glossary – Terms Starting with P
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Top Searches for Stock Markets & Equities
More popular stocks & investing search terms from What the World is Searching on Stock Markets
See also: What the World is Searching on Stocks & Stock Markets – a comprehensive list of popular search terms related to stock markets & stock investing
Finance & Equities Definitions A-Z – A, B, C, D, E, F, G, H, I, J, K, L, M, N, O, P, Q, R, S, T, U, V, W, X, Y, Z
Terms Starting with P
Parabolic SAR The Parabolic Time/Price System, developed by Welles Wilder, is used to set price stops, and is usually referred to as the stop-and-reversal (SAR) indicator. The system is designed to allow more leeway or tolerance for contratrend price fluctuation early in a new trade, and to tighten, progressively, a protective trailing stop order as the trend matures. The Parabolic Time/Price System employs a series of progressively shorter, exponentially smoothed moving averages for each period in which a stock's price moves to a new extreme in the expected trend direction.
Parabolic SARs provide excellent exit points. You should close long positions when the price falls below the SAR, and close short positions when the price rises above the SAR. If you are long (if the price is above the SAR), the SAR moves up every day, regardless of the direction the price is moving. The amount the SAR moves up depends on the amount that prices move.
Pattern Duration The number of days over which a classic pattern formed. Longer Pattern Durations generally forecast the anticipated price movement to occur over a longer period of time. For example, a 90-day pattern anticipates price movement over the long term compared to a shorter-term 30-day pattern.
Payout Ratio The percent of Earnings Per Share (EPS) paid out as a dividend. Payout Ratio is calculated by dividing the quarterly dividend by the quarterly EPS and multiplying by 100. Time periods measured include:
Current Quarter Last Fiscal Year Back
% Change
For stocks and options, the change in the price of the security from the previous trading day's close expressed as a percentage. For mutual funds and money markets, the change in the fund's share price since the previous trading day's close expressed as a percentage. For indexes, the nominal change in the price of the index from the previous trading day's close expressed as a percentage. For Fidelity variable annuity investment options, the change in the investment option's unit price since the previous trading day's close expressed as a percentage.
% Change 52-Week High The percentage a stock's price is above or below its 52-week high.
Note: If you signed the Nasdaq user agreement, the calculation uses real-time data. If you have not signed the Nasdaq user agreement, the calculation uses delayed data.
% Change 52-Week Low The percentage a stock's price is above or below its 52-week low.
Note: If you signed the Nasdaq user agreement, the calculation uses real-time data. If you have not signed the Nasdaq user agreement, the calculation uses delayed data.
% Change from 52-Week High A measure of how close a stock's current price is to its 52-week high. For example, if a stock is at 8 and its 52-week high is 10, the % Change from 52-Week High would be 20.
Use % Change from 52-Week High to find stocks trading close to their 52-week high. Stocks trading close to their high can be an indication of positive momentum or potential over-valuation.
% Change from 52-Week Low A measure of how close a stock's current price is to its 52-week low. For example, if the stock is at 8 and its 52-week low is 5, the % Change from 52-week Low would be 60.
% Change from 52-week Low can be used to find stocks trading close to their lows, indicating that these companies may have fallen out of favor and may be undervalued.
% Change Since First Viewed In the Recently Viewed Stocks list, the change in the price of the security since the security was added to the list expressed as a percentage.
% Compare An indicator that shows the relative performance of symbols you are comparing to your chart's focus symbol.
For example, if you use IBM as your focus symbol and compare it to MSFT, % Compare displays IBM as a flat line, and plots MSFT's performance relative to IBM. If the MSFT line rises above the IBM line, MSFT is outperforming IBM. If it falls below IBM, MSFT is under performing IBM. % Compare returns the final percentage by which the compared symbols underperformed or outperformed the focus symbol.
% in Industry A percentile ranking system used to compare a stock's Value, Growth, and Profitability ratios to the same ratios of other stocks in the same industry. To determine % in Industry, a percentile scale is established by placing the company with the lowest value for the ratio in the industry at the bottom of the scale, the company with the highest value for the ratio in the industry at the top of the scale, and then dividing the values into 100 equal parts, or positions. The value of a stock's % in Industry is its position on that percentile scale.
Along with Industry Average, % in Industry can help you determine how a stock's Value, Growth, and Profitability ratios compare with the same ratios of other stocks in the same industry. For example, if a stock's % in Industry is 87%, and its Return on Equity is 42.5%, then 13% of the stocks in that industry have a Return on Equity ratio greater than 42.5%, while 87% have a Return on Equity below 42.5%.
% Gain The difference in percent between the purchase price per share multiplied by the share quantity and the last price quoted for a security.
% of Institutional Ownership The percentage of outstanding stock shares owned by institutions.
% of Inst. Ownership (Last vs. Prior Qtr.) The change in percentage of outstanding stock shares owned by institutions.
% Owned By Institutions The percentage of a company's total common shares held by financial institutions.
% Price Off 50-Day Avg. The percentage a stock's price is above or below its 50-day average moving price.
% Price Off 20-Day Avg. The percentage a stock's price is above or below its 20-day average moving price.
% Price Off 200-Day Avg. The percentage a stock's price is above or below its 200-day average moving price.
% Revenue to R&D (Last FY) The amount of dollars devoted to research and development as a percentage of revenue using the most recent fiscal year.
R&D is usually realized in the current year as a cost, but can be considered to be an indication of future profitability.
% Short Interest Percent Short Interest is determined by dividing the number of shares sold short divided by the number of shares outstanding and multiplied by 100. Many traders watch short interest closely. As the % Short Interest indicator rises, it reflects a heightening bearish sentiment among investors. As it falls, it suggests sellers are becoming more bullish on the stock's short-term price movements.
Traders commonly use the % Short Interest stock price as a contrary indicator. As the % Short Interest indicator climbs higher, short sellers feel increasing pressure to cover their positions by buying shares, which tends to drive the price even higher.
The % Short Interest indicator is updated monthly for NYSE listed stocks only.
Performance The average daily price growth for a specified time period divided by the average daily price growth for another specified time period. Performance time periods include:
Performance (Last 4 Wk / 13 Wk) The average daily price growth for the last four weeks (a month), divided by the average daily price growth for the last 13 weeks (a quarter). The greater the value is above 1, the more the stock's performance has been accelerating in the last month versus the last year. Use this criterion to find stocks whose growth is accelerating in the medium term. Performance (Last 1 Wk / 4 Wk) The average daily price growth for the last five days, divided by the average daily price growth for the last month. The greater the value is above 1, the more the stock's performance has been accelerating; that is, it has been growing faster in the last week than it had been in the last four weeks. Use the criterion to find stocks whose growth is accelerating in the short term. Performance (Last 13 Wk / 52 Wk) The average daily price growth for the last 13 weeks (a quarter), divided by the average daily price growth for the last 52 weeks (a year). The greater the value is above 1, the more the stock's performance has been accelerating in the last quarter versus the last year. Use this criterion to find stocks whose growth is accelerating in the long term.
Exchange Traded Fund (ETF) performance is measured
By Market Price (MKT) The price at which an investor can buy and sell and ETF in the secondary market, and Net Asset Value (NAV) the price at which an Authorized Participant can create and redeem shares directly with the ETF.
Portfolio Diversification The makeup of a fund's portfolio expressed in terms of asset allocation and industry and sector diversification.
Positive Earnings Surprises A Positive Earnings Surprise occurs when a company's announced earnings (required four times per year) exceed the consensus of what the market thought the company would announce by at least 5%. When results are shown in quintiles, the universe of searched stocks includes all stocks with a percent decrease in reported earnings relative to the consensus for the time period reported. When you search for a specific value, enter a positive number to specify the change. All numbers are absolute numbers representing the magnitude of the change.
Positive Earnings Surprises are usually considered to be an indication of positive momentum.
Positive Earnings Surprises (7-Day) identifies positive earnings surprises (and their magnitude) within the past seven days. To find the companies with the biggest positive earnings surprises, choose the Highest 20% in the last seven days. Positive Earnings Surprises (30-Day) identifies positive earnings surprises (and their magnitude) within the past 30 days. To find the companies with the biggest positive earnings surprises, choose the Highest 20% in the last 30 days. Positive Earnings Surprises (90-Day) identifies positive earnings surprises (and their magnitude) within the past 90 days. To find the companies with the biggest positive earnings surprises, choose the Highest 20% in the last 90 days.
Preferred Stock A type of security sharing the properties of stocks and bonds—a hybrid of a bond and a share of common stock. The holder of a share of preferred stock is normally paid a fixed dividend which receives first priority (i.e., holders of common stock do not receive their dividends until holders of preferred stock have been paid their dividends in full). In the event of a bankruptcy, holders of preferred stock have priority claim to the company's assets over holders of common stock, though the preferred stockholder's claim is still subordinate to that of the bondholders. Generally, preferred stock shareholders do not have voting rights.
In exchange for higher income and perceived safety, holders of preferred stock forgo the possibility of larger future gains. Though capital gains opportunities for preferred stockholders can occur during periods of declining interest rates and improved credit conditions, the primary incentive to invest in preferred stock comes from the periodic income distributions. Additionally, the Jobs and Growth Act of 2003 reduced the tax on dividends paid to individuals for some select preferred securities. To identify the tax status of a preferred issue, refer to the Taxation section of its prospectus. The terms of preferred stock issues can vary widely, even among the same corporation.
Pre-Tax Margin The profitability of a company for a specified time period before taxes are paid. Pre Tax Margin is calculated by dividing net profits before taxes by net sales for the period, and then multiplying by 100 to express the result as a percentage. Time periods measured include:
Most Recent Quarter (MRQ) as an annualized figure Twelve Months Trailing
Previous Close Date The date on which the previous close price was calculated.
Previous Close Price The final trading price for a security at the end of the most recent trading day.
Price The price per share for a security in a watch list. For a Fidelity variable annuity, the price per unit for an investment option. You can enter a price for tracking purposes when you add or edit a security in a watch list.
Price/Book Ratio A stock's price divided by its book value per share. Price/Book Ratio compares the market's valuation of a company to its book value according to its financial statements.
The higher the Price/Book Ratio, the higher the premium the market is willing to pay for the company above its assets. A low Price/Book Ratio may signal a good investment opportunity, as book value is an accounting number and rarely represents the true value of the company. Book value assumes that most assets are worth less now than when they were purchased, and ignores value created through intellectual property.
Price/Cash Flow Ratio A stock's price divided by cash flow per share for a specified time period. Time periods measured include:
Most Recent Quarter (MRQ) Trailing Twelve Months (TTM)
Investors who use cash flow instead of earnings do so because they believe that management has a tendency to play games with earnings, but that it's harder for management to play games with cash flow. Like other valuation ratios, Price/Cash Flow Ratio is best used in comparison with other companies in the same industry.
Price Channel One of the simplest and oldest trend-following models, Price Channel requires no calculations, but it can be reasonably effective despite its simplicity. According to Price Channel theory, investors should buy when the weekly closing price moves up to a new 20-period high, and sell or sell short when the weekly closing price moves down to a new 20-period low. In other words, when the price moves out of its n-period range, go in the direction of the new trend.
Price/Earnings (P/E) Ratio A comparison of a company's current share price to its earnings per share during a specified time period. The higher the P/E Ratio, the more the market is willing to pay for each dollar of annual earnings. For actual time frame comparisons and projected comparisons, the price is the current price. Companies with negative earnings do not have a P/E Ratio.
Actual time frame comparisons include:
Last Year Actual (the most recent fiscal year) Most Recent Quarter (MRQ) Trailing Twelve Months (TTM) 5 Yr Average Projection comparisons include:
P/E (This Year's Estimate) The estimated P/E Ratio for the current year. The universe of searched stocks for P/E (This Year's Estimate) includes only stocks with an earnings per share greater than zero. P/E (Next Year Estimate) The estimated P/E Ratio for the next fiscal year. The universe of searched stocks for P/E (Next Year Estimate) includes only stocks with an earnings per share greater than zero. The universe of searched stocks for P/E Ratio includes only stocks with an earnings per share greater than zero.
Price/Earnings (P/E) Ranges A display of the range of the stock's Price/Earnings (P/E) Ratio by week, month, quarter, or year. The indicator displays solid bars showing the high and low range of the stock's P/E Ratio during each time period.
Price Performance A measure of how much the stock price has risen or dropped over a specified time period, expressed as a percentage. Time periods measured include:
Last 5 Days Last 4 Weeks Last 13 Weeks (i.e., the equivalent of a quarter) Last 52 Weeks (i.e., the equivalent of a year) This Year (from January 1) Use Price Performance to find companies that have outperformed or underperformed the market or their industry.
Price Performance Today The price of a common share of stock in the company, as reported by the Nasdaq, the American Stock Exchange, or the New York Stock Exchange. Price Performance Today is calculated once per minute. If the market is open and you qualify for real-time quotes, you may get price performance results that do not exactly match what you see in the Stock Price column because Price Performance Today is calculated once per minute and the stock Price is updated in real-time. If you have not signed the Nasdaq user agreement, the price is delayed. If the market is closed, the price is the closing price from the previous day.
Price/Sales Ratio A stock's price divided by sales per share for a specified period of time. Time periods measured include:
Most Recent Quarter (MRQ) Trailing Twelve Months (TTM)
Price/Sales Ratio is useful for evaluating companies that have negative earnings or cash flow, since other ratios (e.g., Price/Earnings (P/E) Ratio) can't be used to evaluate a company without earnings. You can also use Price/Sales Ratio to look for companies that aren't managed as profitably as other companies in the same industry.
Price to Earnings Growth (PEG) Ratio Price to Earnings Growth (PEG) Ratio is calculated by dividing a stock's forward P/E by its projected three- to five-year annual earnings-per-share growth rate. PEG Ratio is used to find companies that are trading at a discount to their projected growth. Generally, the higher the PEG Ratio, the pricier the stock. The universe of searched stocks for PEG ratio includes only stocks with an EPS greater than zero.
Use PEG Ratio to measure how much investors are paying for a stock relative to how quickly the stock is expected to grow. Many analysts favor PEG Ratio over Price/Earnings (P/E) Ratio because PEG Ratio accounts for growth. A value less than 1.0 indicates that a stock is trading at a discount to its growth. A value greater than 1.0 indicates a premium. Averages vary sharply by industry, so searching relative to peers makes sense.
Primary Exchange The exchange (e.g., New York Stock Exchange) where a security is primarily purchased or sold.
Profit Margin Net profit after taxes divided by sales for a specified period, expressed as a percentage. Profit Margin's time period measured is the Most Recent Quarter (MRQ), annualized.
Profit Margin is helpful when comparing stocks within similar industries. A higher Profit Margin indicates a more profitable company, which means it's probably doing something right.
Purchase Price The original purchase price per share of the security, or the price per unit of a Fidelity variable annuity investment option. If you do not own the security but would like to track its performance in a watch list, enter the price per share at which you want to begin watching the security, or enter a hypothetical amount to serve as a benchmark.
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