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FINANCIAL DICTIONARY & GLOSSARY: PRO - QU
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proxy - person granted power of attorney by a shareholder to vote for him or her at an annual general meeting.

proxy fight - a way of gaining control of a company by persuading other shareholders to let you vote for them (as proxies) at the annual general meeting.

prudence - see conservatism.

prudential ratios - ratios between a bank's deposits and liquid assets that are considered sufficient -to meet demands for cash.

PSL2 (public sector liquidity 2) - the widest monetary aggregate used in Britain, which adds Treasury Bills and similar instruments to M4.

public goods and services - those which are for the benefit of all citizens.

public limited company (PLC) - a successful, established company that is allowed to offer its shares for sale on the open stock market.

public sector - local government and nationalized industries or services.

public spending - government expenditure (on health, education, social security, defense, etc.).

public utilities - services such as the provision of water, electricity, gas, etc.

purchasing power or buying power - the amount of goods and services that money can buy at a given time.

purchasing power parity - the rate of exchange between two countries at which the price of a representative basket of goods is the same.

put option - the right to sell a fixed quantity of a commodity, security or currency at a certain price on a certain future date.

quantity discount - a price reduction offered on the purchase of a large quantity.

quick-asset ratio or acid-test ratio - liquid assets (including cash and accounts receivable) divided by current liabilities.

quorum - a minimum number of directors and shareholders who must be present at a meeting in order for decisions to be taken.

quota - a maximum amount of things allowed, e.g. a quantity of imports; a country's contribution to the International Monetary Fund.

quotation - the current market price of a share on the stock exchange, or a statement of price for a particular quantity of goods.

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