A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
P. P/ P& Pa Pc Pd Pe Ph Pi Pl Pm Pn Po Pp Pr Ps Pt Pu Py

Proxy

Index of known values that likely approximates an index for which values are unavailable. The proxy is used as a stand-in for the unavailable index.

Prudent underwriter

An underwriter who underwrites risks on a reasonable basis and who is neither unduly apprehensive nor duly incautious. The concept of the prudent underwriter is at the heart of the fundamental principle of utmost good faith as a fact will be judged to be material (see material fact) if it is one that would have influenced the judgement of a prudent and experienced underwriter in his assessment of the risk. The assertion that the particular underwriter would have been influenced by it does not make it a material fact and the fact that another would have ignored it does not prevent it from being material. The test is objective.

Prudential regulation

Deals with the financial management and viability of a firm. It is aimed at ensuring that company failures do not endanger the stability of the financial markets or cause financial loss for the customers of that firm. The FSA sets the standards for the maintenance of capital resources proportionate to a firm’s risks. The provisions will shortly be incorporated into a single Prudential Sourcebook.

Pseudonym

An abbreviation or set of letters used at Lloyd’s for the purpose of identifying syndicates or brokers.
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An abbreviation or combination of letters used in Lloyd’s practice to identify a broker or underwriting syndicate.

PSLRA

The Private Securities Litigation Reform Act of 1995. The statute, which applies to securities class actions filed after December 22, 1995, sought to reduce abusive litigation practices by plaintiff lawyers, creates a defensive “safeharbor” for forward-looking statements, and seeks to encourage early dismissal by courts of meritless lawsuits by standardizing the pleading requirements and staying discovery until after a ruling on a motion to dismiss. Initial experiences since enactment of the legislation ironically suggests that the frequency and severity of federal securities class action lawsuits have increased under the PSLRA.