What Is a Private Investment in Public Equity (PIPE)? Private investment in public equity (PIPE) is the buying of shares of publicly traded stock at a price below the current market value (CMV) per share. This buying method is a practice of investment firms, mutual funds, and other large, accredited investors. A traditional PIPE is one
What Is a PIPE Deal? Private investment in public equity deal (PIPE Deal) refers to the practice of private investors buying a publicly-traded stock at a price below the current price available to the public. Mutual funds and other large institutional investors can strike deals to buy large chunks of stock at a preferred price.
What Is the Pipeline Theory? The pipeline theory sustains the idea that an investment firm that passes all returns on to clients should not be taxed like regular companies. Capital gains, interest, and dividends as returns are key concepts to understand the pipeline theory. The pipeline theory is also referred to as the conduit theory.
What Is a Pip-Squeak Pop? A pip-squeak pop is a big increase in the price of a stock from a very low valuation. This slang term is associated with penny stocks, which typically trade for $5 or less per share. In most instances, a pip-squeak pop looks more significant than it is. A $2 stock that
What Is a Pitchbook? A pitchbook is a sales document created by an investment bank or firm that details the main attributes of the firm, which is then used by the firm’s sales force to help sell products and services and generate new clients. Pitchbooks are helpful guides for the sales force to remember important
What Is Principal, Interest, Taxes, Insurance—PITI? Principal, interest, taxes, insurance (PITI) are the sum components of a mortgage payment. Specifically, they consist of the principal amount, loan interest, property tax, and the homeowners insurance and private mortgage insurance premiums. PITI is typically quoted on a monthly basis and is compared to a borrower’s monthly gross
What is a Pivot? A pivot is a significant price level known in advance which traders view as important and may make trading decisions around that level. As a technical indicator, a pivot price is similar to a resistance or support level. If the pivot level is exceeded, the price is expected to continue in
What Is a Pivot Point? A pivot point is a technical analysis indicator, or calculations, used to determine the overall trend of the market over different time frames. The pivot point itself is simply the average of the intraday high and low, and the closing price from the previous trading day. On the subsequent day
What Is Placed-In-Service? Placed-in-service is the point in time when a property or long-term asset is first placed in use for the purpose of accounting, primarily to calculate depreciation or grant a tax credit. The date the asset is placed in service marks the beginning of the depreciation period. Placed-in-service also applies to property in
What Is a Placement? A placement is the sale of securities to a small number of private investors that is exempt from registration with the Securities and Exchange Commission under Regulation D, as are fixed annuities. This exemption makes a placement a less expensive way for a company to raise capital compared with a public
