Glossary

P

Panel on Takeover and Mergers (PTM)

The body that ensures that takeovers and mergers are conducted fairly on behalf of all shareholders.

Paper offer

An offer of shares in the bidding company that may be ordinary, loan notes or another alternative.

Pari passu

This term is usually used to describe new issues of securities which have the same rights as similar issues already in existence. It means "equal in all respects."

Price/Earnings To Growth - PEG Ratio

Used to determine the relationship between the price, earnings per share, and the forecast growth of a Company the basic formula for which is Price earnings ratio / Forecast growth.

Pending status

These are orders that have been accepted, but which have not yet been dealt, for example orders placed 'At best' outside of market hours. Whilst orders are in this status on your 'Order Status/Cancel' page then you will see a 'Cancel' button next to the order, meaning you have the option to cancel the order before it is dealt.

PEP

Personal Equity Plan. As a result of regulatory changes enforced on 6 April 2008 all PEP accounts automatically became Stocks and Shares ISAs.

Perks

See 'benefits'.

Personal pension

A tax-efficient way to accumulate savings for retirement. Contributions into a pension fund receive tax relief and a proportion of the eventual payout can be taken tax free from age 50. The remainder must be used (either on retirement or by age 75) to buy an annuity to provide income for the rest of the investor's life. Personal pensions can be either individual arrangements, or provided by an employer (known as Group Personal Pensions) although unlike an occupational pension there is no requirement for the employer to contribute.

Phased retirement

Personal pension holders who do not wish to take their pension all at once can stagger purchase of annuities over several years.

Physically settled

Settlement of a warrant by the delivery or receipt of an actual underlying asset. This is the opposite of a cash settled warrant, which settles purely in cash.

PIBS

Permanent Interest Bearing Shares are fixed interest bearing investments issued by building societies and are listed on the London Stock Exchange

Placing

Term used to describe when a company's broker contacts his own clients and offers the shares to them. The general public will not necessarily be offered any shares.

PLUS

A UK quote driven equity market service for listed and unlisted securities. The PLUS service is operated by Ofex plc and is authorised and regulated by the Financial Services Authority. PLUS is not classified as a Recognised Investment Exchange.

Portfolio

A selection of different investments held by you.

Portfolio manager

A named individual who is responsible for the initial construction and the ongoing running of a client's portfolios to meet investment goals agreed with the client.

Portfolio valuations

A statement of your holdings and their market value at any given point.

Preference shares

Similar to ordinary shares but preference shares normally pay a fixed dividend and rank ahead of ordinary shares for dividend payment and in a company liquidation.

Premium

A term used to describe the price paid for a covered warrant.

Price /Earnings Ratio

The share price of a company divided by the earnings per share. A high P/E ratio implies that the company is well thought of for its future prospects.

Proshare

Is an independent, not-for-profit organisation supported by the London Stock Exchange and British Industry, that promotes responsible equity-based investment for individuals and to further the interests of private investors.

Prospectus

A formal written document describing the history, background of managers, fund objectives, a financial statement and other essential data of the company that wants to sell its shares on the stock market.

Protected rights

Individuals can choose to contract out of the State Earnings Related pension scheme by investing instead in an Appropriate Personal Pension plan. (The Barclays Stockbrokers SIPP is not an Appropriate Pension Plan). The benefits bought are known as protected rights.

Protection Barrier

Capital at Risk structured products will normally have an identified level below where any protection to your capital will fall away if this level is breached. For example an Investment Note offering a protection barrier set at 50% means that if the index falls to a level less than 50% below the initial index level, and is not at least at a level equal to the initial index level at maturity the capital repaid will be reduced by 1% for each 1 % that the index is below the initial index level.

PTM Levy

A nominal charge of £1 on deals with considerations of £10,000 and over paid to the Panel for Takeovers and Mergers.

Put covered warrant

A covered warrant that gives the holder the right, but not the obligation, to sell the underlying at a future date and specified price.