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What Is a Payment-In-Kind (PIK) Bond? A payment-in-kind (PIK) bond refers to a type of bond that pays interest in additional bonds rather than in cash during the initial period. The bond issuer incurs additional debt to create the new bonds for the interest payments. Payment-in-kind bonds are considered a type of deferred coupon bond

What Is Pilot Fishing? Pilot fishing is a type of pre-marketing of an initial public offering (IPO) that involves testing out initial investor sentiment to receive feedback on how the market may respond to an actual issue. Pilot fishing has led to some controversy because it could undermine the role of investment bankers, who provide

What Is PIN Cashing? PIN cashing is a type of fraud in which the use of stolen debit or credit card information allows a thief to gain access to the cardholder’s bank or credit account. Typically, PIN cashing involves the use of an automatic teller machine (ATM) to withdraw funds once the card’s personal identification

What Are Pink Sheets? Pink sheets are listings for stocks that trade over-the-counter (OTC) rather than on a major U.S. stock exchange. Many pink sheet listings are stock shares in companies that cannot meet the requirements for listing on a major U.S. stock exchange like the New York Stock Exchange (NYSE). Most pink sheet listings

What Is a Pip? “Pip” is an acronym for percentage in point or price interest point. A pip is the smallest whole unit price move that an exchange rate can make, based on forex market convention. Most currency pairs are priced out to four decimal places and a single pip is in the last (fourth)

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