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FINANCIAL DICTIONARY & GLOSSARY: PO - PRI
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posting - entering items in account books or ledgers, from temporary records such as journals.

preference shares or preferred shares (or stock) - receive a fixed dividend, which is paid before other shares get any dividend.

premises - the place in which a company does business: an office, shop, workshop, factory, warehouse, etc.

premium - the money paid by the insured to the insurer in return for insurance cover or benefits payable; the positive difference between the current price of a security and its par value.

prepaid expenses - amounts paid in advance and recorded as such on a balance sheet.

prestige pricing - giving a high price (perhaps an excessively high price) to a luxury product to reinforce its luxury image.

price - the cost of a good or service to the consumer.

price discrimination - the sale of the same commodity to separate markets at different prices, usually by a monopolist.

price/earnings ratio (PER) - the present market price of an ordinary share divided by the company's net earnings pet share for the past year.

price effect - the result of a change in the price level if consumers' income remains unchanged.

price elasticity - the relationship between the price of a product and the quantity bought by consumers.

price fixing - agreement among competitors to sell at the same price (which is illegal in many countries).

price leadership - the ability to influence prices in a particular industry or market.

price war - reciprocal price cuts between competing suppliers in the attempt to gain a larger market share.

pricing strategy - the choice of a product's initial and subsequent price range.

primary sector of the economy - the extraction of raw materials from the earth, and agriculture.

prime cost or direct cost - the sum of direct material costs and direct labor costs.

prime rate - see base rate.

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