Glossary

General Glossary

P

Pantone 

The name of the owner of a colour correlation system widely used in graphic arts. According to this system, each colour is coded with a reference number that serves to identify it.

Paper 

Thin sheet obtained by softening and pressing fibrous materials such as cotton, linen, etc., grinding the resulting fibre paste and spreading it inside a mould or sheet-forming fabric. The domestic and industrial applications of paper are diverse and include serving as a medium for printing a document.

Past-due registers  

Private agencies where the existence of delinquent customers is registered. Normally, the inclusion of a customer in one of these registers prevents them from accessing additional financing from banks. Pursuant to the regulations in force, those responsible for these files have the obligation of notifying the affected customer of their inclusion in the register within a period of thirty days as of their inclusion therein. The affected party has the right to access and, where applicable, rectify their data in the file. The registration of personal data due to non-fulfilment of monetary obligations can only be carried out in the case of existence of prior debt, mature and payable, which has not been paid, and provided that payment has previously been required from the interested party. Adverse data relative to past-due debts can only be reregistered for a period of six years. (See Data Protection Agency: Organic Law 15/1999 and Instruction 1/1995 of 1 March of the Agency).

Pension fund  

Capital created for the purpose of fulfilling a pension scheme. They lack legal personality and must be administrated by a managing entity with the participation of a custodian.

Pension scheme  

Pension schemes define the rights of people in whose favour they are constituted to perceive income or capital for retirement, permanent incapacity or death, as well as the obligation to contribute to them. The necessary resources for financing, hedging and effectiveness of the pension schemes are included in pension funds.

Personal/tenants in common/ or joint tenancy account 

Classification of an account according to its account holders. An account is personal when it has been opened in the name of single account holder. It is a joint tenancy account when there are two or more account holders, and all transactions must be conducted by agreement of all account holders, and requires their signature. A tenants in common account is that in which there are several account holders and only one signature is required to withdraw funds.

Personal banking  

This term makes reference to institutions specialised in managing the investments of their clients, usually only from high economic levels.

Personal loan  

A loan granted to a private individual on the basis of the confidence he/she inspires as a borrower. The holder is liable for reimbursement of the loan with all his/her assets, both present and future.

Photolitho 

The name currently given to photographic films applied during the colour graphic reproduction process. Each colour image is comprised of four individual films that represent the three primary colours, yellow, magenta and cyan and key black.

PIN  

A secret code that must only be known by the credit or debit card holder, which allows them to carry out operations in automated teller machines or for payments in shops when required.

Pixelgram 

"As in the case of a kinegram or hologram, it consists of microscopically fine diffraction grids. As in the case of a kinegram, a pixelgram is generated by means of a computer and does not contain three-dimensional images. A pixelgram consists of small dots or "pixels" which are only visible with the help of a magnifying glass."

Placement targets 

Systems whereby the Treasury announces prior to each auction, the amount of debt it is willing to issue. Said system comprises a target forecast and a ceiling level, both defined in nominal terms.

Placing in circulation 

The process whereby a central bank, making use of its right to issue banknotes, places new banknotes in circulation which as of that time are considered legal tender and can be used for payment.

Planchettes 

A security feature used in some types of banknotes. They are special disks with a diameter of approximately one millimetre which are inserted for security purposes between the paper fibres during manufacture thereof. The planchettes may be coloured or colourless and visible only under ultraviolet light.

Planographic printing 

A printing technique whereby the image is applied to a flat surface, contrary to that of raised printing. See lithography, lithographic offset.

Pledge  

The delivery or commitment of an asset as collateral to secure the performance of an obligation.

Pledging 

An operation whereby a pledge is subject to the payment of a loan received. It implies handing over personal property to a creditor or third party as a guarantee of fulfilment of an obligation (for example, shares may be pledged as a guarantee for obtaining a loan).

Point-of-sale terminals 

Electronic devices located at the point of sale for products or services, at which the appropriate checks or authorisations are carried out prior to the acceptance of card payments in commercial transactions. In Spain, all terminals allow operations with credit and debit cards, without distinction. Point-of-sale terminals are only calculated as independent units when they operate autonomously. Devices installed in a single commercial establishment that depend on a common communications node are treated as a single element.

Portfolio investments 

Operations and/or net positions of residents in securities issued by non-residents within the euro area («assets») and operations and/or net positions of non-residents in securities issued by residents («liabilities»). They comprise shares and investments and securities other than shares (bonds and obligations, and monetary market instruments), excluding the amounts registered in direct investments or official reserve assets.

Preference shares  

Also called preferred shares. A debt instrument issued by a company that does not grant voting rights to the investor. They offer fixed retribution (conditioned by obtaining profits) and their period is unlimited, although the issuer reserves the right to redeem them after five years, subject to authorisation by the supervisor (in the case of financial institutions, the Banco de España). Although they are generally aimed at institutional investors, when they are commercialised among private clients the same must properly evaluate their real profitability, taking into account the difficulties they may find to liquidate them (for the return of the nominal value) and the right of pre-emption (order of preference of payment in case of bankruptcy), which is only surpassed by that of ordinary shares. In the past they were issued by instrumental subsidiaries based abroad, primarily in offshore centres, to take advantage of tax privileges, but since 2003 their issuance from Spanish territory has been regulated.

Prepaid card 

An electronic means of payment for certain services (e.g. mobile telephony), and which is issued by the operator offering this service. They are loaded with a certain amount, which the customer pays in advance, enabling the card to be used up to this limit.

Price brochure  

A document that every financial institution is obliged to place at their customers' disposal, which includes a detailed breakdown of the maximum bank charges for its transactions and services. Credit institution price brochures may be consulted on the Banco de España website.

Price stability 

"The primary objective of the Eurosystem, defined generically in the Treaty establishing the European Community. The Governing Council of the ECB has defined price stability as a year-on-year increase in the Harmonised Index of Consumer Prices for the euro area that is below but close to 2% over the medium term. This definition lays down a ceiling and at the same time, by indicating that it is an "increase", it implies that deflation is not compatible with price stability. The importance of this objective lies in the fact that a stable price scenario is associated with low interest rates, it fosters decisions made on investment and consumption, it increases transparency in price structures, which enables better resource allocation and avoids the negative effects that high inflation rates have on social groups dependent on incomes that have little scope for adaptation to price increases, such as pensioners or holders of fixed income securities."

Primary balance 

The general government sector's net borrowing or net lending excluding interest payments on consolidated government liabilities.

Primary colours 

Colours which cannot be obtained by mixing other colours. The mixture of primary colours produces the maximum range of secondary colours. Distinction must be made between subtractive colour mixture and additive colour mixture. Primary subtractive colours are yellow, magenta and cyan. The subtractive mixture is used in document printing. The most widely known application of additive colour mixture is a television screen, which consists of three colours: red, green and blue.

Printing technologies 

State-of-the-art machinery and various printing techniques are used in the manufacture of euro banknotes. This enables the incorporation of various security features, ensuring that authenticity can be easily verified.

Protective paper coating 

The process whereby a solution is used to give paper a gloss finish, which increases its surface resistance to penetration by liquids and dirt.

Protest  

A notarial deed which states that the bearer of a bill of exchange unsuccessfully tried to cash their bill.

Prototype 

A newly developed device or element which has not given rise to mass production.

Public offering  

A public placement (by private and/or institutional investors) of part or the total capital of a company. It may be due to the privatisation of a state-owned company, the floating of a private company or the partial sale of capital by a shareholder. The issuer must register a detailed information brochure at the National Securities Market Commission (CNMV) for investors to be aware of all the characteristics and possible risks of the operation.

Purchasing power parity (PPP): 

The rate used for the conversion of one currency into another that equalises the purchasing power of the two currencies by eliminating the differences in the price levels prevailing in the countries concerned. In their simplest form, PPPs show the ratio of the prices in national currency of the same good or service in different countries.

Put option  

A contract that extends the right to the holder to sell an asset at the price stipulated, from the date of signing to its maturity (American option) or at that same time (European option).