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Personal Finance Glossary

P/E Passive Management Pay Date Payee Payee Account Number Payment Protection Percent Change Percent Profit Period Certain Payout Periodic Rate Points Policy Owner Policy Year Preferred Risk Preferred Shares Premium Premium Tax Prepaid Tuition Plan Prepayment Penalty Prequalification Previous Price-to-Earnings Ratio (P/E) Primary Beneficiary Prime Rate Principal Private Mortgage Insurance (PMI) Probate Proceeds Prospectus Put Option

Price-to-Earnings Ratio (P/E) The most common measure of how expensive a stock is. To calculate a P/E ratio on a particular stock, you divide the current price of a stock by the current year's earnings per share.

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