Parts Per Million (PPM) is a unit of measurement used to express the concentration of one substance within a million parts of a given medium, often employed in chemical analysis to determine the concentration of trace substances.
In legal terms, a 'party' refers to an individual or entity that is involved in a legal contract, lawsuit, or other legal proceedings.
A party line is a telephone service available at a lower rate than a private line. It allows multiple users to share the same line, but users are not allowed to interfere with each other.
Pascal is a high-level computer programming language developed by Niklaus Wirth designed to encourage structured programming and data structuring. It has played a significant role in teaching and is noteworthy for its support for structured and modular programming.
A Pass-Through Certificate is an investment instrument that allows investors to receive income that is derived from another entity, often a group of pooled assets such as mortgages. These pooled assets generate receipts or payments that are subsequently passed through to the certificate holders.
A pass-through entity is a non-taxable business structure where income or expenses are passed directly to the owners, retaining their original character.
Pass-through securities represent a financial instrument where income generated from a pool of underlying assets, such as loans or mortgages, is passed on to investors through intermediaries.
Pass-throughs refer to operating expenses that can be charged to a tenant along with the usual rent, as defined in the lease. Additionally, the term also relates to pass-through certificates in the context of mortgage-backed securities.
A passbook is a book issued by a bank to record deposits, withdrawals, and interest earned in a savings account, typically known as a passbook savings account. It lists the depositor's name, account number, and all transactions.
A dividend customarily paid on common shares that the board of directors fails to declare, usually due to financial difficulties at the company; also referred to as an omitted dividend. It differs in implications when associated with cumulative preferred stocks, where the passed dividends accrue until paid.
A unit of measure that is a product of average trip length multiplied by the number of passengers. Statistics for transportation safety are often cited on the basis of passenger miles.
An in-depth look into Passive Activity Loss (PAL), including definition, examples, frequently asked questions, related terms, online resources, and suggested books for further studies.
An investment or activity that generates passive income, typically seen in income-oriented real estate limited partnerships. This income can offset passive activity losses (PALs) for tax purposes.
Passive investment income refers to the earnings derived from investments in which the individual or entity does not actively participate. This includes royalties, rents, dividends, interest, annuities, and gains from the sale of stocks and securities.
A passive investor is an individual or entity that invests money but does not actively manage the business or property in which they invest. They typically seek long-term investment returns with minimal day-to-day involvement.
A passport is an official document issued by a country to its citizens, permitting international travel and serving as identification.
A password is a secret character string required to log onto a computer system, thus preventing unauthorized persons from obtaining access. Computer users often password-protect their files for added security.
The term 'past due' refers to an obligation or invoice that has not been paid or performed by its specified due date but has not yet reached a state of default.
A private pension plan credit given to an employee’s past service with an employer prior to the establishment of a pension plan. Usually, a lower percentage of compensation is credited for benefits for past service than for future service benefits.
Past service credit refers to the recognition of service time an employee has accrued prior to being a member of a pension plan, which is used to determine pension benefits.
Past Service Liability refers to the obligations to fund an employee's benefits in a pension plan for their prior service before entering into the pension plan. It is a crucial element in pension planning and impacts the financing of future benefits.
A banking loan on which the interest is more than 90 days overdue. After this grace period has elapsed, the borrower becomes liable for late charges.
A patch is a small alteration to a computer program, primarily installed as a correction. Though patches are mainly used to fix bugs or plug security vulnerabilities, they can also add functionalities to enhance an aging program's competitiveness.
A patent is a legal grant of exclusive rights provided by a government authority to an inventor or their assignee for a new and useful invention. The patent grants the holder the right to exclude others from making, using, or selling the invention for a certain period of time.
The Patent Appeals Court is a specialized judicial body responsible for adjudicating appeals of decisions made by patent offices, primarily related to patent grants, denials, and disputes.
Patent infringement is the act of trespassing upon the rights secured by a patent. It is determined by whether the device in question performs substantially the same work in substantially the same way and accomplishes the same result as the patented device.
Patent medicine refers to commercial products marketed as cures or treatments that are easily obtainable without a doctor's prescription, often with proprietary labels.
A patent monopoly is a government-granted exclusive right to inventors and producers of innovative goods. It serves to encourage research and innovation by ensuring the producer will benefit financially from their successful new products.
A Patent of Invention is a grant of rights provided by a government to an inventor, giving them the exclusive right to exclude others from making, using, selling, and importing the invention for a specified period, typically 20 years from the filing date of the patent application. This right creates a legal monopoly, enabling the patent holder to control the usage of the invention and potentially monetize it through licenses or sales.
The term 'Patent Pending' indicates that a patent application has been filed with the U.S. Patent Office and is currently under review. This status signifies that a patent search is being conducted to determine if the invention is new and patentable according to the law.
Patent warfare refers to the practice of utilizing multiple patents with varied expiration dates covering different aspects of the same invention, intending to block competition post the original patent's expiration.
Paternalism in management refers to a leadership style where managers assume ultimate responsibility for employee welfare, making decisions regarding benefits, job assignments, and promotions. It is sometimes criticized for implying an inferior status for employees.
A hierarchical description of where a computer directory (folder) or file is located on your computer or on a network.
A Pathfinder Prospectus is an outline document designed to test market reaction to the initial public offering (IPO) or flotation of a new company.
A Patriot Bond is a special designation given to the Series EE Savings Bond following the terrorist attacks on the World Trade Center on September 11, 2001.
In the realm of business and economics, a patron is an individual who patronizes a business, typically known as a customer. In taxation contexts, it specifically refers to one who does business with a cooperative but is not necessarily a member.
Pattern bargaining is a negotiation strategy where individual employee unions and employers reach agreement on the basis of a collective bargaining settlement developed elsewhere. This can occur on a national or regional basis and can be initiated by either a union or an industry.
A pauper is an individual who is destitute and dependent on others for support. Often, paupers lack the means to support themselves primarily due to poverty, disability, or lack of employment.
A person or organization at the mercy of another's will, often used in strategic games or business situations.
Pay can refer to the compensation given to personnel for services performed or the act of exchanging money for goods or services.
The pay and file system was a former procedure for paying corporation tax in the UK, introduced for accounting periods ending after 30 September 1993. It required companies to file a detailed return within twelve months of the end of the accounting period.
PAYG is a payment model where users pay for goods or services as they use them, rather than making an outright purchase. This flexible approach bases charges on actual consumption or usage.
Pay for Performance is a salary scheme where employees accept a lower base pay in exchange for bonuses based on meeting production or other organizational goals.
A pay period is the time duration during which an employee's earnings are calculated to ensure accurate and timely payments. This duration can vary from a week, half a month, to an entire month.
Pay-as-you-earn (PAYE) is the UK scheme for collecting income tax and National Insurance contributions. It places the responsibility on employers to collect these taxes from employees as payments are made.
The Pay-As-You-Earn (PAYE) system is a method of paying income tax and national insurance contributions to the revenue authorities based on an employee’s regular earnings.
A pay-as-you-go pension system, also known as an unfunded pension system, finances state retirement benefits through contributions from current workers rather than investing contributions for future benefits.
A payable is an amount that is owed by a company to its suppliers or creditors, typically from the purchase of supplies or inventory (accounts payable), but it can also include amounts owed for other purposes such as bank loans (bank loans payable).
Understanding the concept of 'Payable to Bearer' in the realm of bills of exchange and how it differs from 'Payable to Order'. This term is essential for those involved in financial transactions using negotiable instruments.
A term describing a bill of exchange in which the payee is named and on which there are no restrictions or endorsements, thus allowing it to be paid to the endorsee.
Payables refer to accounts, rates, and mortgages owed by a business or person, often encompassing current liabilities rather than all types of debt.
In capital budgeting, the payback period estimates the time required to recover the initial investment from cash inflows generated by the project. The major limitation of this method is that it does not consider cash flows after the payback period and, thus, it's not a reliable measure of the overall profitability of an investment.
The Payback Period Method is a capital budgeting technique that calculates the time required for projected cash inflows to equal initial investment expenditure, often used to gauge project risk.
A paycheck is a check used to pay an employee's wages, containing net wages after deductions for federal and state income taxes, Social Security, union dues, and other benefit adjustments.
Payday refers to the specific day set by employers on which employees receive their wages or salaries, typically in the form of paychecks or direct deposits into their bank accounts.
A payday loan is a short-term loan based on a promise by the borrower to repay the loan from his or her next paycheck. These loans generally are made at a very high rate of interest and require minimal creditworthiness.
A payee is an individual or entity to whom a debt is payable or to whose order a bill, note, or check is made payable, thus playing a crucial role in financial transactions.
A payee statement is a required tax information statement that indicates the amount paid to a payee, including various types of income and withholding details.
A payer is an individual or entity that is responsible for the payment of a bill, fees, or other financial obligations. The role of the payer is critical in transactional and service delivery contexts within various economic sectors.
A Paying Agent is typically a bank or another financial institution that is contracted under a paying agency agreement to manage the payment of interest and principal sums due on a bearer security.
Payload refers to the cargo or freight that produces revenue or income, typically measured by weight. It encompasses merchandise transported by carriers for profit, including returned merchandise that does not result in additional trips.
Payment refers to the satisfaction of a claim or debt usually through the delivery of money in fulfillment of an obligation.
The specific date on which the interest rate of an Adjustable-Rate Mortgage (ARM) can be recalibrated as per predetermined terms.
A Payment Date is the specific date on which a declared stock dividend, bond interest payment, or a bill payment is due.
Payment in advance, also known as prepayment, is a transaction in which a payment for goods or services is made before the actual delivery. It is often used to mitigate credit risk or secure services and goods ahead of time.
Payment in due course refers to the payment of a negotiable instrument, such as a check or promissory note, made when it is due or later, to its rightful holder, conducted in good faith and without notice of any defects in the holder's title.
Payment for goods and services made in the form of other goods and services rather than cash. It differs from barter, as the payer receives the same goods and services in return.
A payment method refers to the means of payment employed by a customer when making a purchase or settling an invoice. Common payment methods include cash, check, money order, or credit card.
A payment on account is an advance payment or part payment towards an outstanding balance or debt, typically not linked to any specific invoice. It is often used in ongoing business relationships where frequent transactions occur.
The payoff amount refers to the remaining balance of a loan that a borrower must pay to completely satisfy the debt, including any applicable prepayment penalty.
Payola refers to the secret or private payment made to individuals or organizations in exchange for the promotion of a product or service. The term originated in the 1950s within the record industry.
Return on investment equal to the original marketing expenditure; also known as payback. When a company recovers its investment plus the expected built-in return from launching or reintroducing a new product or service, it has realized a profit from its original capital outlay. A company's payout represents the minimum amount of dollar sales that must be generated to offset the cost of an advertising program.
The payout ratio represents the percentage of a firm's profits that is distributed to shareholders in the form of dividends. This metric provides insight into how much money a company returns to its shareholders compared to how much it retains for reinvestment and other corporate purposes.
A secure online system that enables account holders to pay for goods or services and arrange money transfers over the Internet. It operates in 203 currencies worldwide.
Payroll is the aggregate periodic amount a business pays its workers and a list of employees along with their compensation.
A payroll deduction refers to the reduction of the amounts paid to a worker from their gross earnings to cover various costs, such as taxes, savings, pension contributions, union dues, and insurance premiums. The paycheck reflects the gross pay minus these deductions.
The payroll period is the interval of time for which an employer ordinarily pays wages to employees. The amount of withholding varies depending on the payroll period.
An arrangement between employer and employee whereby a specified amount of money is deducted from the employee's pay and invested for the employee in stocks, bonds, or other investments.
Payroll taxes are taxes levied on wages and salaries. They include federal and state income tax, Social Security (FICA), and unemployment insurance.
Payroll withholding is the process by which employers deduct a portion of an employee's earnings to pay for taxes and other mandatory deductions. This system ensures that the employees' tax obligations are met throughout the year.
PBGC Guaranteed Benefits refer to the portion of pension benefits that are guaranteed by the Pension Benefit Guaranty Corporation (PBGC) in the event that the pension plan sponsor defaults.
A PC-compatible computer is capable of running software that is intended for the IBM PC. Virtually all microcomputers currently available, including some made by Apple Computer, are PC-compatible.
PC or P.C. stands for Personal Computer, typically referring to a general-purpose computer for individual use. It also stands for Professional Corporation, a legal business entity formed by certain professionals who provide licensed services in various fields.
An essential financial term representing the profits of a company that are subject to corporation tax, adjusted for allowable deductions.
PDF, or Portable Document Format, is a versatile file format developed by Adobe Systems to present documents, including text formatting and images, independent of software, hardware, or operating systems. It is widely used for creating, sharing, and printing documents securely and accurately across different platforms.
A peak represents the highest point of the business cycle in a particular phase of economic activity, typically characterized by maximum output, employment, and consumer spending.
In transportation, 'Peak Period' refers to the specific time intervals during which the transportation system experiences the highest demand and utilization, often linked to morning and evening rush hours.
Pecking Order refers to a hierarchy or rank order within an organization, originally derived from the behavior of chickens where dominance is established through a series of physical interactions.
Peculation is the fraudulent misappropriation of money or goods entrusted to one's care, often involving public funds or resources. This act is closely related to embezzlement, but typically refers to the misuse of funds by public officials.
Relating to or consisting of money; that which can be valued or assessed in monetary terms. A pecuniary loss is a financial loss, or one that can be quantified in terms of money.
A pecuniary bequest is a specific sum of money given to an heir as stated in a decedent's will.
Peer-to-peer lending, also known as P2P lending or social lending, is a growing practice in which individuals with spare funds lend money to small businesses or private borrowers through dedicated online platforms, bypassing traditional banks.
A corporation established by the U.S. government to facilitate unsubsidized funding of U.S. exports.
Pegging is a method used to stabilize the price of a security, commodity, or currency by intervening in the market. This term is commonly associated with maintaining exchange rate stability and supporting commodity prices, like agricultural goods, through governmental action.
Money or other costs one will pay for breaking a law or violating part or all of the terms of a contract. Penalties are often imposed for prepaying a loan, failing to complete a contract sale, or breaking a lease; penalties are not tax deductible.
The charge imposed by a bank or savings institution for withdrawing funds from a time deposit before its maturity. This penalty may be deductible by individuals as an adjustment to gross income.
Penalties for repeated errors are imposed to discourage consistent inaccuracies in tax filings or financial reports. These penalties serve as a deterrent for habitual mistakes and ensure compliance with legal standards.
Pencil Out refers to the practice of estimating in approximate figures whether a proposed investment or business opportunity is expected to be profitable. It involves making quick calculations to assess the potential financial viability of the venture.
Penetration pricing involves establishing low pricing for a product to achieve rapid market entry and discourage competitors, with the potential to raise prices later once market share is established.
Penny shares are securities with very low market prices traded on a stock exchange, often appealing to small investors due to the potential for significant holdings at a low cost.
