Glossary
Portfolio Manager
A person or organization that professionally manages an investment portfolio on behalf of a client – an individual or legal entity, an investment fund, a pension fund, or another institution. The portfolio manager makes decisions regarding the selection, acquisition, holding, and sale of assets such as stocks, bonds, derivatives, real estate, and others, in accordance with the client’s predetermined investment objectives, risk profile, and strategy. Portfolio management is conducted in compliance with regulatory requirements and is subject to supervision by competent authorities, such as the Financial Supervision Commission in Bulgaria.
Position
In the context of trading and investments, a position represents an investor’s share or exposure to a financial asset, such as stocks, currency, bonds, commodities, or derivatives, and indicates how and with what volume the investor participates in the market—whether expecting the asset’s price to rise or fall. A position can be long, where the asset is bought with the expectation that its price will increase, or short, where an asset that is not owned (borrowed) is sold, expecting its price to decline and be repurchased at a lower cost. Positions can be open (active) or closed (after the transaction is completed). Maintaining certain positions often requires a margin, especially in leveraged trading, and their management includes risk-limiting strategies such as stop orders.
POS Terminal
A point-of-sale, or POS, terminal is a physical or virtual device for accepting direct cashless payments with bank cards, which decodes the information contained in their chip or magnetic stripe.
POS Terminal - glossary for children
A device used to pay with a bank card in a shop instead of using coins and banknotes.
Precious (Noble) Metals
Metals such as gold, silver, platinum, and palladium, resistant to corrosion and oxidation. They serve as industrial raw materials in various sectors but are primarily used as investment assets for value preservation and growth, including in portfolios for diversification and inflation protection. They can be traded on financial markets as physical metals, ETFs, futures, or other financial instruments.
Price - glossary for children
The amount of money paid when buying a good or service.
Principal
The initial amount you receive as a loan or credit, on which interest is charged. This is the main debt that must be repaid to the lender, usually with added costs such as interest, fees, and commissions. With each loan instalment, part of the payment covers the principal, and the rest covers the accrued interest. Reducing the principal with each payment also lowers the future interest amounts if they are calculated on the remaining debt.
Principal under a Civil Contract
A natural or legal person who commissions the performance of a specific service, work, or task to another person, the contractor, without establishing an employment relationship between them. The principal is not an employer but a party to the contract and pays remuneration for the completed work or provided service, and under certain conditions is obliged to withhold and remit social insurance contributions and taxes on the remuneration in accordance with tax and social insurance legislation.
Producer Price - glossary for children
The price at which a producer sells their goods to wholesalers or retailers. It includes the costs of production and the producer’s profit.
Product Fee (Eco Fee)
A fee imposed on products that generate widely distributed waste after use, aimed at covering the costs of their environmentally sound disposal. The fee is paid by the importer or manufacturer when certain goods are placed on the market and is often included in the final price for the consumer. The product fee is used for the collection, recycling, or disposal of waste, environmental protection, and the promotion of reuse and recycling. Examples of goods subject to a product fee include electrical appliances, motor vehicles, tires, accumulators and batteries, oils and chemicals, as well as packaging.
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