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PURCHASING POWER
is the value of a
particular monetary unit in terms of the amount of goods or services
that can be purchased with it, i,e, the ability to purchase, generally
measured by income.
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PURE COST
is any direct readily verifiable
cost assignable to the subject or item, e.g., the direct cost of producing
a product.
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PURE RESEARCH
is motivated exclusively
by the search for knowledge for its own sake.
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PUSH-DOWN ACCOUNTING
, in acquisitions,
is an exception to the general rule that the acquiree’s carrying
values are unaffected by the purchase may arise when substantially all
of the acquiree’s shares are purchased by the acquirer. In that
case, the acquirer may direct the acquiree to revalue its assets in accordance
with the fair values attributed to those assets by the acquirer. This
practice is known as push-down accounting, because the fair values are “pushed
down” to the acquiree’s books. The net effect is the same
as if the acquirer had formed a new subsidiary, which then purchased
all of the assets and liabilities of the acquiree. There are two advantages
to push-down accounting: a. The first is that the financial position
and results of operations of the acquiree will be reported on the same
economic basis in both the consolidated statements and its own separate
entity statements. Without push-down accounting, for example, it would
be possible for the subsidiary to report a profit on its own and yet
contribute an operating loss to the parent’s consolidated results,
if the consolidation adjustments are sufficient to tip the balance between
profit and loss; and, b. The second advantage is that the process of
consolidation will be greatly simplified for the parent. Since the carrying
values will be the same as the acquisition fair values, there will be
no need for many of the consolidation adjustments that otherwise will
be required every time consolidated statements are prepared.
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PUSH-PULL STRATEGY
is the effective
simultaneous use of a combination of two marketing strategies: PUSH
= 1. (physical distribution definition) A manufacturing strategy aimed
at other channel members rather than the end consumer. The manufacturer
attempts to entice other channel members to carry its product through
trade allowances, inventory stocking procedures, pricing policies, etc.
2. (sales promotion definition) The communications and promotional activities
by the marketer to persuade wholesale and retail channel members to stock
and promote specific products. PULL = 1. (physical distribution
definition) A manufacturing strategy aimed at the end consumer of a product.
The product is pulled through the channel by consumer demand initiated
by promotional efforts, inventory stocking procedures, etc. 2. (sales
promotion definition) The communications and promotional activities by
the marketer to persuade consumers to request specific products or brands
from retail channel members.
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PUT
is (1) A stipulated privilege of
buying or selling a stated property, security, or commodity at a given
price (strike price) within a specified time (for an American-style option,
at any time prior to or on the expiration date). A securities option is
a negotiable contract in which the seller (writer), for a certain sum
of money called the option premium, gives the buyer the right to demand
within a specified time the purchase (call) or sale (put) by the option
seller of a specified number of bonds, currency units, index units, or
shares of stock at a fixed price or rate called the strike price. Many
options are settled for cash equal to the difference between the aggregate
spot price and the aggregate strike price rather than by delivery of the
underlying. In the U.S. and many other countries, stock options are usually
written for units of 100 shares. Other units of underlying coverage are
standard in other option markets. Options are ordinarily issued for periods
of less than one year, but longer-term options are increasingly common.
(2) Any financial contract that changes in value like an option (asymmetrically),
even if the terms of the contract do not state the price relationship
in terms of a right or privilege or in other language usually associated
with options.
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PUT OPTION
is the right but not the
obligation to sell an underlying at a particular price (strike price)
on or before the expiration date of the contract. Alternatively, a short
forward position with an upside insurance policy.
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PUT WARRANT
is a security that, in
contrast to a conventional warrant, gives the holder the right to sell
the underlying or to receive a cash payment that increases as the value
of the underlying declines. Put warrants, like their call warrant counterparts,
generally have an initial term of more than one year.
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