Glossary


Letter: P
 
P/E (Price/Earnings) The ratio between the market price of a share and profit per share in the last year
 
 
Peer Indicates a competitor belonging to the same business or present in the same segmento f the market. In the Tyre business, Pirelli’s major competitor peers are: Michelin, Bridgestone, Goodyear, Nokian (See Peers & Market)
 
Pension Fund A fund established by an employer to facilitate and organize the investment of employees' retirement funds contributed by the employer and employees. The pension fund is a common asset pool meant to generate stable growth over the long term, and provide pensions for employees when they reach the end of their working years and commence retirement. Pension funds are commonly run by some sort of financial intermediary for the company and its employees, although some larger corporations operate their pension funds in-house. Pension funds control relatively large amounts of capital and represent the largest institutional investors in many nations.
 
Portfolio Indicates collectively all securities owned by an investor
 
Price sensitive Price sensitive information regards events not yet disclosed to the market, that could affect the net worth, income and financial position of the issuer, beyond their management affairs
 
Privileged information Information of a specific kind which is not available to the public, regarding financial instruments or their issuers that, if it were made public, might potentially influence the price significantly. In English this is in fact known as price sensitive information. Anyone taking advantage of it to obtain profit or create disturbance on the market commits the crime of "abuse of privileged information" (see Insider trading )
 
Profit warning Price sensitive communication through which the company rectifies the previous forecasts about its profitability. The new forecast must be disclosed to the market as soon as it is clear that the previous forecast, due to the availability of new information, is now misleading and that the previous target can't be reached. The profit warning must be communicated with a similar method of the forecast it rectifies