P/E [Price-to-Earnings Ratio]
A price-to-earnings ratio (P/E) is financial ratio that is used for the purposes of valuation. It compares the share price with the profit or the net income per year, earned by the firm (also per share).
Generally, a higher P/E means that the investors expect better future growth of their earnings. The P/E, however, is not a universal ratio and does not reveal the whole picture. It is better to compare the P/E ratios of companies within one industry, compare them to the whole market, or make a comparison between the historical companies` price-to-earnings ratios. It would be useless for anyone to compare the P/E of a tech company with the P/E of a furniture company. The reason is that the growth prospects in the different industries also differ.
Another way the P/E is referred to as in the financial world is “multiple”. The reason is that it indicates the willingness of the investors to pay per dollar of the earnings. It is generally accepted that an investor will find it acceptable to pay $30 for $1 of current earnings if the company is presently trading at a multiple (P/E) of 30.
The investors should take care not to base their decisions on this measurement alone as it is not universal. Decisions should be made based on how, in practical terms, are the inputs used in the calculations. One should consider the following questions:
Is the organization accurately valued in terms of the current market price? For what periods and how is the income to be valued?
In which way is the total capitalization to be calculated?
Are these values to be trusted?
What are the growth prospects with regard to revenue and earnings over the period of the investment?
What about the one-time special charges which artificially lower the earnings?
Were they used or ignored in the calculation?
Are these, in fact, one time charges or the company is trying to fool us into thinking so?
http://en.wikipedia.org/wiki/Price-to-earnings_ratio
Paper Loss
Paper loss refers to a loss which has occurred but has not yet been realized. It is calculated after a comparison with the current market price of a security and the earlier purchase price. The stock’s value has lowered but since the security is still not sold, losses have not been realized. Paper loss is also called unrealized loss.
Plenty of investors make themselves believe that since their loss has not been crystallized, they have actually not suffered any real loss. Nothing can be further from truth.
The assumption that paper losses are not real is a misleading one. This is because of the simple reason that enormous amount of time would be taken for the stock to go back to the break even point. That is also not taking into account the effects of inflation which otherwise makes the “grow back” time even longer. Suppose you possess a stock that fell by 25%, the same amount would first require growing back 34% before getting to the break – even point.
You can prevent big losses by not putting more than 4% of your entire portfolio to a specific stock. After you purchase it, you need to put a trailing 25% to avoid loss on it. Thus total risk becomes very low.
Paper Profit
Capital gain on an investment which has been unrealized is known as paper profit. Sometimes we hold on to certain stocks which have risen in value. This is unrealized gain or paper gain. Paper millionaires and true millionaires are not one and the same thing.
True millionaires are those who possess greater than $1 million cash in their bank accounts. “Paper profits” or paper millionaires” generally take place when investors purchase marketable securities that are subsequently bid up to incredibly higher prices in the open market.
Paper profit, though seemingly a harmless, even profitable proposition can be actually disadvantageous. During the “dotcom boom” there were many paper millionaires created on account of stock options. The problem during that time was that certain rules and regulations in stock option contracts did not make it possible for the investors to sell those stocks and realize concrete profits. Thus subsequently after the dotcom market suffered a setback, there were quite a large number of paper millionaires who suffered huge losses. Thus the paper profit situation is not usually safe till the time the holdings are liquidated. It is best to hold on to a stock till about a reasonable time period. Sell it off after that point to get real profits.
Penny Stock
Stock that is traded for less than $5 per share is called a penny stock in the United States. Quotation services are used to trade them over the counter. Examples of such services include The Pink sheets and the OTC bulletin board. Although the price is low, the traded share volumes per a sub-penny stock sometimes reach hundreds of millions. Information that is considered legitimate in regard to the companies trading penny stock is hard to find and therefore, it is easy to manipulate.
Any stock traded outside the main exchanges, such as NASDAQ, NYSE and AMEX, is referred in the U.S. as penny stock.
In the UK, the term penny shares, rather than penny stock is used. It generally points to the shares and stocks traded by cap companies which are small. These are companies having capital of less than £100 million or a share price lower than £1.
The low price and the potential for fast growth lure a lot of investors. The difference in price, for example, may be in several hundred percents for a very short period. On the other hand, a fast drop in value can occur, causing the stocks to reduction in value over long term. The SEC points out that penny stocks represent investments of high risk and new investors should be cautious. The risks comprise of nonexistent financial reporting, limited liquidity and sometimes fraud.
Stock prices can rapidly go up or down due to sudden changes in regard to supply and demand. The low liquidity can make it also very hard to sell the stock and the shorting of the stock can be hard to accomplish. Penny stocks are also vulnerable to manipulation because they lack both volatility and liquidity. They are very often promoted as taking part in dump and pump schemes.
http://en.wikipedia.org/wiki/Penny_Stock
Personal Banker
A bank employee who looks after a client, and is the one whom the client contacts when there are problems
Peshmerga
The Peshmerga are armed Kurdish fighters, male and female, whose roots run back to the late 19th century and have mainly been concerned with protecting Kurdish territory from outside threats. The Peshmerga fought with American troops in the 2003 invasion of Iraq, driving against Iraqi forces from the north. After the fall of Saddam, the Kurdish military sprung from the established Peshmerga.
Peshmerga means "those who stand in front of death."
Also Known As: Kurdish army, Kurdish militia, freedom fighter
Portfolio
A Portfolio is the combination of all financial assets owned by an individual or financial institution. By owning different asset classes in their portfolios (real estate, cash, bond, precious metals, blue-chip companies) investors try to minimize their investment risk.
http://en.wikipedia.org/wiki/Portfolio_(finance)
Preferred Stock
Preferred stock or preferred shares refer to a category of ownership in a company that has a greater claim on the earnings and assets than common stock. Preferred stock dividends are usually paid out before distributing dividends to common stockholders. The specific details of the structure of preferred stock differ in each corporation. However, it is best to think of this as a financial instrument which combines in the traits of fixed dividends (debts) and equity which has the potential to appreciate.
What are the advantages of preferred stock over common stock?
A small disadvantage with the preferred stockholders is that they usually have to give up their voting rights. Also, preferred stock or preferred shares have lower potential for appreciation.
Premium
The Premium is the difference between the selling price of a bond and its face value.
Prime Interest Rate
The banks keep their prime interest rate for the most creditworthy clients. These are usually business customers who are considered the most stable and prominent. The major banks keep the rate almost the same. When adjustments to the rate are made, they are done at the same time by the banks. The prime rate is, however, not adjusted on a regular basis. Fed Funds rate is also always considered when latter is changed.
In the United States, the prime rate is approximately 300 points above the funds rate. The Federal Reserve funding requirements are fulfilled by the banks with overnight loans for which the federal funds rate applies. This rate and a little addition is frequently used for lending money to a good number of creditworthy customers. The same applies for Libor- the London Interbank Offered Rate. Eight times a year, there is a meeting of the Federal Open Market Committee which sets a target for the federal funds rate. Prime interest rate derives from this base rate.
Those who provide customer and commercial loan products make use of the prime interest rate as a basis for their landing rate. Then, they apply a profit margin proportionate to the loan risk. Financial institutions in the U.S. use the rate to price particular time deposit products such as certificates of deposit.
Note that the prime rate is an index, not a law. Sometimes, business owners or consumers may find an interest rate that is lower than the prime rate applied to a credit card or a loan bank product. As a way of generating business, the lenders sometimes offer loans that are below the rate to customers who are considered highly qualified. In addition, when the loan product is considered secure, interest rates below the prime interest rate become relatively common.
http://en.wikipedia.org/wiki/Prime_interest_rate
A price-to-earnings ratio (P/E) is financial ratio that is used for the purposes of valuation. It compares the share price with the profit or the net income per year, earned by the firm (also per share).
Generally, a higher P/E means that the investors expect better future growth of their earnings. The P/E, however, is not a universal ratio and does not reveal the whole picture. It is better to compare the P/E ratios of companies within one industry, compare them to the whole market, or make a comparison between the historical companies` price-to-earnings ratios. It would be useless for anyone to compare the P/E of a tech company with the P/E of a furniture company. The reason is that the growth prospects in the different industries also differ.
Another way the P/E is referred to as in the financial world is “multiple”. The reason is that it indicates the willingness of the investors to pay per dollar of the earnings. It is generally accepted that an investor will find it acceptable to pay $30 for $1 of current earnings if the company is presently trading at a multiple (P/E) of 30.
The investors should take care not to base their decisions on this measurement alone as it is not universal. Decisions should be made based on how, in practical terms, are the inputs used in the calculations. One should consider the following questions:
Is the organization accurately valued in terms of the current market price? For what periods and how is the income to be valued?
In which way is the total capitalization to be calculated?
Are these values to be trusted?
What are the growth prospects with regard to revenue and earnings over the period of the investment?
What about the one-time special charges which artificially lower the earnings?
Were they used or ignored in the calculation?
Are these, in fact, one time charges or the company is trying to fool us into thinking so?
http://en.wikipedia.org/wiki/Price-to-earnings_ratio
Paper Loss
Paper loss refers to a loss which has occurred but has not yet been realized. It is calculated after a comparison with the current market price of a security and the earlier purchase price. The stock’s value has lowered but since the security is still not sold, losses have not been realized. Paper loss is also called unrealized loss.
Plenty of investors make themselves believe that since their loss has not been crystallized, they have actually not suffered any real loss. Nothing can be further from truth.
The assumption that paper losses are not real is a misleading one. This is because of the simple reason that enormous amount of time would be taken for the stock to go back to the break even point. That is also not taking into account the effects of inflation which otherwise makes the “grow back” time even longer. Suppose you possess a stock that fell by 25%, the same amount would first require growing back 34% before getting to the break – even point.
You can prevent big losses by not putting more than 4% of your entire portfolio to a specific stock. After you purchase it, you need to put a trailing 25% to avoid loss on it. Thus total risk becomes very low.
Paper Profit
Capital gain on an investment which has been unrealized is known as paper profit. Sometimes we hold on to certain stocks which have risen in value. This is unrealized gain or paper gain. Paper millionaires and true millionaires are not one and the same thing.
True millionaires are those who possess greater than $1 million cash in their bank accounts. “Paper profits” or paper millionaires” generally take place when investors purchase marketable securities that are subsequently bid up to incredibly higher prices in the open market.
Paper profit, though seemingly a harmless, even profitable proposition can be actually disadvantageous. During the “dotcom boom” there were many paper millionaires created on account of stock options. The problem during that time was that certain rules and regulations in stock option contracts did not make it possible for the investors to sell those stocks and realize concrete profits. Thus subsequently after the dotcom market suffered a setback, there were quite a large number of paper millionaires who suffered huge losses. Thus the paper profit situation is not usually safe till the time the holdings are liquidated. It is best to hold on to a stock till about a reasonable time period. Sell it off after that point to get real profits.
Penny Stock
Stock that is traded for less than $5 per share is called a penny stock in the United States. Quotation services are used to trade them over the counter. Examples of such services include The Pink sheets and the OTC bulletin board. Although the price is low, the traded share volumes per a sub-penny stock sometimes reach hundreds of millions. Information that is considered legitimate in regard to the companies trading penny stock is hard to find and therefore, it is easy to manipulate.
Any stock traded outside the main exchanges, such as NASDAQ, NYSE and AMEX, is referred in the U.S. as penny stock.
In the UK, the term penny shares, rather than penny stock is used. It generally points to the shares and stocks traded by cap companies which are small. These are companies having capital of less than £100 million or a share price lower than £1.
The low price and the potential for fast growth lure a lot of investors. The difference in price, for example, may be in several hundred percents for a very short period. On the other hand, a fast drop in value can occur, causing the stocks to reduction in value over long term. The SEC points out that penny stocks represent investments of high risk and new investors should be cautious. The risks comprise of nonexistent financial reporting, limited liquidity and sometimes fraud.
Stock prices can rapidly go up or down due to sudden changes in regard to supply and demand. The low liquidity can make it also very hard to sell the stock and the shorting of the stock can be hard to accomplish. Penny stocks are also vulnerable to manipulation because they lack both volatility and liquidity. They are very often promoted as taking part in dump and pump schemes.
http://en.wikipedia.org/wiki/Penny_Stock
Personal Banker
A bank employee who looks after a client, and is the one whom the client contacts when there are problems
Peshmerga
The Peshmerga are armed Kurdish fighters, male and female, whose roots run back to the late 19th century and have mainly been concerned with protecting Kurdish territory from outside threats. The Peshmerga fought with American troops in the 2003 invasion of Iraq, driving against Iraqi forces from the north. After the fall of Saddam, the Kurdish military sprung from the established Peshmerga.
Peshmerga means "those who stand in front of death."
Also Known As: Kurdish army, Kurdish militia, freedom fighter
Portfolio
A Portfolio is the combination of all financial assets owned by an individual or financial institution. By owning different asset classes in their portfolios (real estate, cash, bond, precious metals, blue-chip companies) investors try to minimize their investment risk.
http://en.wikipedia.org/wiki/Portfolio_(finance)
Preferred Stock
Preferred stock or preferred shares refer to a category of ownership in a company that has a greater claim on the earnings and assets than common stock. Preferred stock dividends are usually paid out before distributing dividends to common stockholders. The specific details of the structure of preferred stock differ in each corporation. However, it is best to think of this as a financial instrument which combines in the traits of fixed dividends (debts) and equity which has the potential to appreciate.
What are the advantages of preferred stock over common stock?
- Preferred stockholders have a much higher claim to a corporation’s assets and earnings. Thus during favorable times, dividends are distributed to the preferred stockholders before common stockholders. During the times of bankruptcy, the company liquidates and pays all creditors and preferred stockholders, while the common stockholders are paid subsequently.
- The nature of the dividends of preferred stocks is different from those of common stock. The former is paid at certain regular intervals. When buying a preferred stock, you will get some idea when to anticipate a dividend. In case of a common stock, it is on the board of director’s discretion whether to pay out a dividend or not. Thus preferred stock usually is not fluctuating in nature as much as a company’s common stock. This is often referred to as a fixed-income security.
- The dividend right of a preferred stockholder is higher in the sense dividends can be accumulated. If the dividend is not paid in a particular year, it can be accumulated every year to be paid off cumulatively.
A small disadvantage with the preferred stockholders is that they usually have to give up their voting rights. Also, preferred stock or preferred shares have lower potential for appreciation.
Premium
The Premium is the difference between the selling price of a bond and its face value.
Prime Interest Rate
The banks keep their prime interest rate for the most creditworthy clients. These are usually business customers who are considered the most stable and prominent. The major banks keep the rate almost the same. When adjustments to the rate are made, they are done at the same time by the banks. The prime rate is, however, not adjusted on a regular basis. Fed Funds rate is also always considered when latter is changed.
In the United States, the prime rate is approximately 300 points above the funds rate. The Federal Reserve funding requirements are fulfilled by the banks with overnight loans for which the federal funds rate applies. This rate and a little addition is frequently used for lending money to a good number of creditworthy customers. The same applies for Libor- the London Interbank Offered Rate. Eight times a year, there is a meeting of the Federal Open Market Committee which sets a target for the federal funds rate. Prime interest rate derives from this base rate.
Those who provide customer and commercial loan products make use of the prime interest rate as a basis for their landing rate. Then, they apply a profit margin proportionate to the loan risk. Financial institutions in the U.S. use the rate to price particular time deposit products such as certificates of deposit.
Note that the prime rate is an index, not a law. Sometimes, business owners or consumers may find an interest rate that is lower than the prime rate applied to a credit card or a loan bank product. As a way of generating business, the lenders sometimes offer loans that are below the rate to customers who are considered highly qualified. In addition, when the loan product is considered secure, interest rates below the prime interest rate become relatively common.
http://en.wikipedia.org/wiki/Prime_interest_rate
Prime Minister: Nouri al-Maliki, [Shiite]

(Arabic: نوري كامل محمّد حسن المالكي Nūrī Kāmil al-Mālikī; born June 20, 1950), also known as Jawad al-Maliki or Abu Esraa. Al-Maliki was first installed as prime minister as a compromise candidate in 2006 but barely hung onto the job in 2010 when his political coalition fell short of winning the most seats in national elections. Born in 1950 in Hindiya, he holds a master’s degree in Arabic and worked at the education ministry before fleeing Saddam Hussein’s regime.
http://en.wikipedia.org/wiki/Nouri_al-Maliki
Maliki's Life and accomplishments
http://www.cabinet.iq/
Maliki's Cabinet 2011
Principal
The Principal is the initial amount of money lent to a borrower. The loan principal has to be repaid to the money lender, but the borrower also pays interest for using the money.
Private Banker
A provider of personalized banking services to depositors with a high net worth.
Private Banking
Private banking is a term for banking, investment and other financial services provided by banks to private individuals investing sizable assets. The term "private" refers to the customer service being rendered on a more personal basis than in mass-market retail banking, usually via dedicated bank advisers. It should not be confused with a private bank, which is simply a non-incorporated banking institution.
Historically private banking has been viewed as very exclusive, only catering for high net worth individuals with liquidity over $2 million, although it is now possible to open some private bank accounts with as little as $250,000 for private investors.[citation needed] An institution's private banking division will provide various services such as wealth management, savings, inheritance and tax planning for their clients. A high-level form of private banking (for the especially affluent) is often referred to as wealth management. For private banking services clients pay either based on the number of transactions, the annual portfolio performance or a "flat-fee", usually calculated as a yearly percentage of the total investment amount.[1]
The word "private" also alludes to bank secrecy and minimizing taxes through careful allocation of assets or by hiding assets from the taxing authorities. Swiss and certain offshore banks have been criticized for such cooperation with individuals practicing tax evasion. Although tax fraud is a criminal offense in Switzerland, tax evasion is only a civil offense, not requiring banks to notify taxing authorities.
Profit
Earning profit is the reason why every business operates. In other words, the generation of profits is the aim of the businesses. While a company may have other objectives, without the generation of profit, the business activity will have to end.
In an easy to grasp way, the meaning of profit can be explained as the company’s income, earned over a defined time period. The two types of profit are net profit and gross profit. By deducting the cost of goods from the sale, the gross profit is found. Net profit, on the other hand, is the retained actual profit of a business and represents the difference between the company’s revenue and expenses.
The type of profit, considered to be most familiar, is the accounting profit. It shows the money amount one has left over in the course of the business, after the explicit costs have been paid out.
In economics, the focus is on foregone or lost opportunities, so these should be taken into account when profit is calculated. The account values that do not show in the checkbook, such as cost of time, resale value, rate of returns, and depreciation must also be considered. To account for these, a calculation of the economic profit should be used. Economic profit is considered to be the profit made by the business after all opportunity and explicit costs have been taken into account. It is often the case that a profitable business in view of accounting is not a profitable business with regards to economics. A good idea here is that business to closes activities.
The elements of the economic profit are such elements that contribute to the profit of the entrepreneurs. Good examples are the land and the capital supplied by the investors.
Profit Taking
Profit taking is the process associated with selling stock and thus receiving profits. Taking chips off the table is an analogous process. When you make a good investment, you aim at taking back the money from the market without incurring any risk. That is how the profit taking is explained in the traditional sense. In the investor’s point of view, it is usually decreasing the value of his portfolio.
Which is the best way to enjoy profit-taking as quickly as possible? What are its main components? What is essential to know in order to compete successfully with a number of other investors? How to quiet the emotions ready to overpower your strategy for profit making?
Regardless of where the economy is going, a good trader always books his profits. Even when the market is volatile and the prices fluctuate, he seems coordinated and just enjoys the scene. The experienced brokers are questioned by many people who want to know what it takes to become a successful trader who never fail. In fact, no one knows the answer. Investors, making informed decisions, are the people who gain big profits in the area of share market operations.
An honest self-analysis is required. You need to have a balanced individuality: neither an extrovert nor an introvert. Controlled aggression should be applied. Individuals who are unable to control their drives should restrain from this type of trading. Investors should be able to take diverse but adequate positions. They have to keep track and wait for the right moment to strike and reap the profits.
Another important quality is flexibility. Ask for advice and information these investors who have been successful in the area of profit making and follow suit. In a nutshell, fighting one’s way is the best path to profit taking.
PUK
Patriotic Union of Kurdistan
The Principal is the initial amount of money lent to a borrower. The loan principal has to be repaid to the money lender, but the borrower also pays interest for using the money.
Private Banker
A provider of personalized banking services to depositors with a high net worth.
Private Banking
Private banking is a term for banking, investment and other financial services provided by banks to private individuals investing sizable assets. The term "private" refers to the customer service being rendered on a more personal basis than in mass-market retail banking, usually via dedicated bank advisers. It should not be confused with a private bank, which is simply a non-incorporated banking institution.
Historically private banking has been viewed as very exclusive, only catering for high net worth individuals with liquidity over $2 million, although it is now possible to open some private bank accounts with as little as $250,000 for private investors.[citation needed] An institution's private banking division will provide various services such as wealth management, savings, inheritance and tax planning for their clients. A high-level form of private banking (for the especially affluent) is often referred to as wealth management. For private banking services clients pay either based on the number of transactions, the annual portfolio performance or a "flat-fee", usually calculated as a yearly percentage of the total investment amount.[1]
The word "private" also alludes to bank secrecy and minimizing taxes through careful allocation of assets or by hiding assets from the taxing authorities. Swiss and certain offshore banks have been criticized for such cooperation with individuals practicing tax evasion. Although tax fraud is a criminal offense in Switzerland, tax evasion is only a civil offense, not requiring banks to notify taxing authorities.
Profit
Earning profit is the reason why every business operates. In other words, the generation of profits is the aim of the businesses. While a company may have other objectives, without the generation of profit, the business activity will have to end.
In an easy to grasp way, the meaning of profit can be explained as the company’s income, earned over a defined time period. The two types of profit are net profit and gross profit. By deducting the cost of goods from the sale, the gross profit is found. Net profit, on the other hand, is the retained actual profit of a business and represents the difference between the company’s revenue and expenses.
The type of profit, considered to be most familiar, is the accounting profit. It shows the money amount one has left over in the course of the business, after the explicit costs have been paid out.
In economics, the focus is on foregone or lost opportunities, so these should be taken into account when profit is calculated. The account values that do not show in the checkbook, such as cost of time, resale value, rate of returns, and depreciation must also be considered. To account for these, a calculation of the economic profit should be used. Economic profit is considered to be the profit made by the business after all opportunity and explicit costs have been taken into account. It is often the case that a profitable business in view of accounting is not a profitable business with regards to economics. A good idea here is that business to closes activities.
The elements of the economic profit are such elements that contribute to the profit of the entrepreneurs. Good examples are the land and the capital supplied by the investors.
Profit Taking
Profit taking is the process associated with selling stock and thus receiving profits. Taking chips off the table is an analogous process. When you make a good investment, you aim at taking back the money from the market without incurring any risk. That is how the profit taking is explained in the traditional sense. In the investor’s point of view, it is usually decreasing the value of his portfolio.
Which is the best way to enjoy profit-taking as quickly as possible? What are its main components? What is essential to know in order to compete successfully with a number of other investors? How to quiet the emotions ready to overpower your strategy for profit making?
Regardless of where the economy is going, a good trader always books his profits. Even when the market is volatile and the prices fluctuate, he seems coordinated and just enjoys the scene. The experienced brokers are questioned by many people who want to know what it takes to become a successful trader who never fail. In fact, no one knows the answer. Investors, making informed decisions, are the people who gain big profits in the area of share market operations.
An honest self-analysis is required. You need to have a balanced individuality: neither an extrovert nor an introvert. Controlled aggression should be applied. Individuals who are unable to control their drives should restrain from this type of trading. Investors should be able to take diverse but adequate positions. They have to keep track and wait for the right moment to strike and reap the profits.
Another important quality is flexibility. Ask for advice and information these investors who have been successful in the area of profit making and follow suit. In a nutshell, fighting one’s way is the best path to profit taking.
PUK
Patriotic Union of Kurdistan