What Is Price Rigging? Price rigging occurs when parties conspire to fix or inflate prices to achieve higher profits at the expense of the consumer. Also known as “price fixing” or “collusion,” price rigging can take place in any industry and is usually illegal. As a term, “price rigging” is most commonly used in British
What Is Price Stickiness? Price stickiness, or sticky prices, is the resistance of market price(s) to change quickly, despite shifts in the broad economy suggesting a different price is optimal. “Sticky” is a general economics term that can apply to any financial variable that is resistant to change. When applied to prices, it means that
What Is Price Talk? Price talk is the discussion of the appropriate price for an upcoming security issue. During the price talk phase, the investment community will discuss and debate a reasonable range of prices within which it’s estimated the new security should be sold. Price talks commonly occur before an initial public offering (IPO)
What Is Price Action? Price action is the movement of a security’s price plotted over time. Price action forms the basis for all technical analyses of a stock, commodity or other asset charts. Many short-term traders rely exclusively on price action and the formations and trends extrapolated from it to make trading decisions. Technical analysis
What Is Pre-foreclosure? Pre-foreclosure refers to the first phase of a legal proceeding that ultimately can conclude in a property being repossessed from a defaulted borrower. The lender files a notice of default on the property in pre-foreclosure because the borrowing owner exceeds the contractual terms for delinquent payments. A notice of default informs the borrowing owner
What is Pre-Funded Bond? Pre-funded bond is a government issued, usually municipal, bond where the funds to pay it off at the call date are set aside in an escrow account. Key Takeaways Pre-funded bond is a government issued, usually municipal, bond where the funds to pay it off at the call date are set
What Is a Pre-IPO Placement? A pre-initial public offering (IPO) placement is a private sale of large blocks of shares before a stock is listed on a public exchange. The buyers are typically private equity firms, hedge funds, and other institutions willing to buy large stakes in the firm. Due to the size of the investments
What Is a Preliminary Prospectus? A preliminary prospectus is a first draft registration statement that a firm files prior to proceeding with an initial public offering (IPO) of their securities. The document, filed with the Securities and Exchange Commission (SEC), is intended to provide pertinent information to prospective shareholders about the company’s business, managers, strategic
What are Permanently Restricted Assets Permanently restricted assets are funds of a nonprofit organization that must be used in designated ways and whose principal cannot be touched. The income that the principal amount earns goes toward funding the stated wishes of the donor(s). Donations of such assets are not uncommon, as individuals, groups or organizations
A premature distribution or early withdrawal is any distribution taken from an individual retirement account (IRA), 401(k) investment account, a tax-deferred annuity, or another qualified retirement-savings plan that is paid to a beneficiary who is younger than 59½ years old. Premature distributions are subject to a 10% early withdrawal penalty by the Internal Revenue Service
