What Is a Principal Private Residence (Canada)? A principal private residence is a home a Canadian taxpayer or family maintains as its primary residence. A family unit can only have one principal private residence at any given time. In order to qualify, the property must be owned by the taxpayer or couple, or fall inside a
What Is a Principal Reduction? A principal reduction is a decrease in the amount owed on a loan, typically a mortgage. A lender may grant a principal reduction to provide financial relief for a borrower as an alternative to foreclosure on the property. Key Takeaways A principal reduction reduces the amount owed on a mortgage
What Is a Principal Residence? A principal residence is the primary location that a person inhabits. It is also referred to as a primary residence or main residence. It does not matter whether it is a house, apartment, trailer, or boat, as long as it is where an individual, couple, or family lives most of
What Is Prior Probability? Prior probability, in Bayesian statistics, is the probability of an event before new data is collected. This is the best rational assessment of the probability of an outcome based on the current knowledge before an experiment is performed. Prior probability can be compared with posterior probability. Key Takeaways A prior probability
What Is Prior Acts Coverage? Prior acts coverage is an insurance policy feature that covers claims made on insurable events that occurred prior to a policy’s purchase. This simplifies insurance matters for holders of liability insurance who change insurance providers. Key Takeaways Prior acts coverage is an insurance policy feature that covers claims made on
Possible Outcomes of Prisoner’s Dilemma Outcome Henry Cooperates Henry Defects Elizabeth Cooperates (1,1) (5,0) Elizabeth Defects (0,5) (3,3) Penalties for (Elizabeth, Henry) In this case, each robber always has an incentive to defect, regardless of the choice the other makes. From Elizabeth’s point of view, if Henry remains silent, then Elizabeth can either co-operate with
What Is a Private Activity Bond (PAB)? Private Activity Bonds are bonds issued by or on behalf of a State or Local Government for the purpose of providing special financial benefits for qualified projects. If the bonds meet specific criteria the interest earned may be tax-exempt. The financing is most often for projects of a
What Is a Private Annuity? A private annuity is a special agreement in which an individual (annuitant) transfers property to an obligor. The obligor agrees to make payments to the annuitant according to an agreed-upon schedule in exchange for the property transfer. Private annuities are not an industry standard necessarily but may be used in various scenarios
What Is Private Banking? Private banking consists of personalized financial services and products offered to the high-net-worth individual (HNWI) clients of a retail bank or other financial institution. It includes a wide range of wealth management services, and all provided under one roof. Services include investing and portfolio management, tax services, insurance, and trust and
What Is a Private Company? A private company is a firm held under private ownership. Private companies may issue stock and have shareholders, but their shares do not trade on public exchanges and are not issued through an initial public offering (IPO). As a result, private firms do not need to meet the Securities and Exchange
