MoneyU Glossary of Terms


MoneyU Glossary of Terms


Browse the glossary using this index

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P

Preferred Stock

An equity share in the ownership of a company having a higher claim than common stock. There is no guarantee that the money paid for the stock will be returned or that there will be any dividends paid. However, dividends must be paid on preferred stock before they may be paid on common. Preferred stockholders are in line ahead of common stockholders but behind creditors if the company is unable to pay its obligations.

Premiums

Monthly fees to a health insurance firm that provides you with coverage.

Prepayment

When a portion or the entire amount of the principal of a loan is paid before it is due. This will usually reduce the total amount of interest that must be paid.

Present Value

Money, expressed in today's dollars.

Previous Balance

The total balance due at the end of the last billing cycle.

Prime Rate

The interest rate banks charge for loans to their biggest and highest-rated customers. The prime rate changes based on the demand for money and the rate the U.S. Federal Reserve Bank charges to its member banks. It is used as a major economic indicator.

Principal

The amount of money you owe, not including the interest due on it.

Private

Belonging to, restricted to, or intended for an individual person.

Private Mortgage Insurance (PMI)

Protection for the lender against a loss if a borrower defaults on a loan. It is usually required for loans in which the down payment is less than 20 percent of the sales price or, in a refinancing, when the amount financed is greater than 80 percent of the appraised value.

Probate Property

Property that is subject to distribution by the probate process. The table in the Estate Planning section shows property that is subject to probate.

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