finance

The pre-filing period is the stage in the initial public offering (IPO) process prior to when the issuer files their registration statement. Also referred to as the quiet period.

Predatory lending is a broad, nontechnical term for lending practices that exploit borrowers through unfair, deceptive, abusive, or fraudulent conduct. It is not a singular federal cause of action with one universal definition. A practice described as “predatory” may instead violate one or more federal or state statutes, regulations, or common-law rules.

A prediction market is a speculative information exchange where people can trade on the outcomes of future events. Odds and payouts are based on the perceived likelihood of an event occurring. 

A preliminary prospectus is a document that issuers disseminate to prospective investors during the waiting period in the initial public offering process (IPO) to describe their business operations and their offering. A preliminary prospectus may also be referred to as a “red herring.” 

A prepayment penalty clause is common in mortgage contracts, and it specifies that if the borrower pays down or pays off the mortgage early, usually within the first five years of the loan, a penalty will be levied. Not all lenders charge prepayment penalties.

In securities law, the primary market refers to the market where an issuer offers securities, or other financial instruments—such as stocks,&n

A primary offering is the issuance of new securities. A primary offering is referred to as taking place in the primary market. 

Compare: secondary offering. 

Priority refers to the order of preference given to different interests or rights. Priority appears in multiple areas of law regarding debt, equity, bankruptcy, and patents.

Private placements are an offering of securities to institutions and sophisticated investors, as opposed to public offerings (e.g. an initial public offering (IPO)). 

A public offering is an offering of a company’s securities to public markets. A company’s first offering of securities to the public is known as an initial public offering (IPO). Subsequent offerings are known as follow-on offerings.