Par value: For stocks, par value is the value of a security that is stated on the certificate. For bonds, par value is the dollar amount on which a bond's interest is calculated and the amount paid to bondholders at maturity. Par value is also known as face value.

Personal representative: A person who settles a decedent's estate. Sometimes called an executor or administrator.

Portfolio: A collection of various investments held by an individual investor or organization.

Position: The amount of a security that is held in an account or portfolio or owed to another entity.

Pour-over will: A will that transfers assets from the decedent's estate to a previously established trust. A pour-over will is strongly suggested with a living trust document.

Preferred stock: A class of stock that entitles holders to receive dividends before they are paid to common stockholders; dividends are usually fixed. If the company liquidates, preferred stockholders have prior claim on assets over common stockholders. (See also stock.)

Premium: The amount by which a bond sells above its par value. (See also discount.)

Price: The dollar amount at which a security trades.

Price-earnings ratio (P/E): The current price of a share of stock divided by the earnings per share of the issuing firm. The P/E is used to compare stocks selling at different price levels.

Principal: The amount of invested dollars. With an investment in bonds, the principal is generally returned to the investor when the bond matures.

Prospectus: The official document highlighting the key information about securities registered with the Securities and Exchange Commission.

Put option: A contract that gives the buyer the right to sell a number of shares of stock at a specified price until a specified date.