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Pitchbook

Pitchbooks serve as indispensable tools in the finance industry, providing a succinct yet comprehensive overview of a company, its financial performance, and potential investment opportunities. These documents are fundamental in conveying complex financial information to potential investors, facilitating informed decision-making processes. What is a Pitchbook? A pitchbook is a presentation document created by investment banks,

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Pip

In forex trading, the smallest price change that a given exchange rate can make is called a pip. A pip stands for “percentage in point” or “price interest point.” It is a standardized unit and is the smallest amount by which a currency quote can change. What Does a Pip Represent? Pips are typically used

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Penny Stock

Penny stocks are stocks that typically trade for under $5 per share. They are typically traded on over-the-counter (OTC) exchanges rather than major stock exchanges like the NYSE or NASDAQ. These stocks are often issued by small companies, and they tend to have low market capitalization. Understanding Penny Stocks Investing in penny stocks can be

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Payout

Payout, in financial terms, refers to the distribution of earnings or capital by a company to its shareholders. This distribution can take various forms, including dividends, share buybacks, or other forms of financial distribution. Types of Payouts . Dividends Dividends are the most common form of payout. They represent a portion of a company’s profits

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Pay Yourself First

Paying yourself first” is a financial strategy that emphasizes prioritizing saving and investing before spending on other expenses. This approach is a fundamental principle of personal finance that can lead to long-term financial stability and wealth accumulation. In this article, we’ll explore what it means to pay yourself first, why it’s important, and how you

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Pattern Day Trader

A Pattern Day Trader is a regulatory designation given to traders who execute four or more day trades within five business days, provided that the number of day trades is more than 6% of the total trades in the account during that period. This classification is relevant because it triggers specific regulatory requirements. What is

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Passive Income

Passive income is earnings derived from a rental property, limited partnership, or other enterprise in which a person is not actively involved. As with active income, passive income is usually taxable, but it is often treated differently by the Internal Revenue Service (IRS). Understanding Passive Income Passive income is typically taxable income. However, it is

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Parabolic SAR (Stop and Reverse) Indicator

The Parabolic Indicator is a popular technical analysis tool used by traders to identify potential reversal points in the direction of a security’s price movement. Developed by Welles Wilder, the indicator is also known as the Parabolic Stop and Reverse (SAR) indicator. It is designed to highlight potential entry and exit points in trending markets.

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Paper Trade

Paper trade is a simulated trading practice where individuals can buy and sell securities without risking real money. This method enables traders to test investment strategies and familiarize themselves with the dynamics of the market. How Paper Trade Works In paper trading, participants receive virtual money, typically referred to as “paper money” or “virtual money,”

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