Pari passu

From Wikipedia, the free encyclopedia

Jump to: navigation, search

Pari passu is a Latin phrase that literally means "with equal step."[1] It is sometimes translated as "part and parcel," "hand-in-hand," "with equal force," or "moving together,"[citation needed] and by extension, "fairly," "without partiality."

In law, this term is commonly used as legal jargon. Black's Law Dictionary (8th ed., 2004) defines pari passu as "proportionally; at an equal pace; without preference."

In finance, this term refers to two or more loans, bonds, classes of shares having equal rights of payment or level of seniority.[2] For asset management firms, the term denotes an equal allotment of trades to strategically identical funds or managed accounts.

This term is also often used in bankruptcy proceedings where creditors are said to be paid pari passu, or each creditor is paid pro rata in accordance with the amount of his claim. Here its meaning is "equally and without preference."

[edit] See also

[edit] References

  1. ^ Belinsky, Natalya. "Glossary of Colloquialisms (Starting with "P")". TranslationDirectory.com. http://www.translationdirectory.com/glossaries/glossary014_p.htm. Retrieved 2008-02-13. 
  2. ^ Investopedia.com

[edit] External links

Text document with red question mark.svg
 This article includes a list of references, related reading or external links, but its sources remain unclear because it lacks inline citations. Please improve this article by introducing more precise citations where appropriate. (December 2007)
v • d • e
Corporate finance and investment banking
Capital structure Met life tower crop.jpg
Transactions
(terms / conditions)
Valuation
List of investment banks · List of finance topics
Stub icon This economics or finance-related article is a stub. You can help Wikipedia by expanding it.
IUS This legal article about a Latin phrase is a stub. You can help Wikipedia by expanding it.
Retrieved from "http://en.wikipedia.org/wiki/Pari_passu"