What Is a Primary Regulator? A primary regulator is a state or federal regulatory agency tasked with being the main supervising entity of a financial institution. In most cases, this is the same agency that issued the initial charter allowing the financial institution to operate. Banks and other financial institutions must file quarterly call reports
What Are Primary Reserves? Primary reserves are the minimum amount of cash legally required to operate a bank. Primary reserves also include the legal reserves housed in a Federal Reserve bank or other correspondent bank. Checks that have not been collected are included in this amount as well. The legal primary reserve requirement may or
What Is Prime? Prime is a classification of borrowers, rates, or holdings in the lending market that are considered to be of high quality. This classification often refers to loans made to high-quality prime borrowers that are offered prime or relatively low interest rates. Key Takeaways Prime is a term that refers to high quality in
What Is a Prime Borrower? A prime borrower is someone who is considered a below-average credit risk. This type of borrower is considered likely to make loan payments on time and likely to repay the loan in full. Understanding Prime Borrower Prime borrowers have credit files that show a strong history of using credit wisely
What Is a Prime Brokerage? A prime brokerage is a bundled group of services that investment banks and other financial institutions offer to hedge funds and other large investment clients that need to be able to borrow securities or cash in order to engage in netting to achieve absolute returns. The services provided under prime
What Is a Price Band? A price band is a value-setting method in which a seller indicates an upper and lower cost limit, between which buyers are able to place bids. The price band’s floor and cap provide guidance to the buyers. This type of auction pricing technique is often used with initial public offerings (IPOs).
What Is a Price by Volume Chart (PBV)? A price by volume (PBV) chart is a horizontal histogram plotted on a security’s chart, showing the volume of shares traded at a specific price level. Often times, price by volume histograms are found on the Y-axis and are used by technical traders to predict areas of support
What Is a Price Change? A price change in the stock market is a shift in the value of a security or another asset to either a higher or lower level. The term also refers to the difference between a stock’s closing price on a trading day and its closing price on the previous trading
What Is a Price Channel? The term price channel refers to a signal that appears on a chart when a security’s price becomes bounded between two parallel lines. The price channel may be termed horizontal, ascending, or descending depending on the direction of the trend. Price channels are often used by traders who practice the
What Are Price Controls? The term “price controls” refers to the legal minimum or maximum prices set for specified goods. Price controls are normally mandated by the government in the free market. They are usually implemented as a means of direct economic intervention to manage the affordability of certain goods and services, including rent, gasoline
