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What does PTC mean in finance?

Asked by Anonymous Sep 02, 2026 0 views 1 answers
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Answered Sep 02, 2026

In the financial sector, PTC most commonly stands for Pass-Through Certificate, a security that represents an undivided ownership interest in a pooled portfolio of debt instruments, such as mortgages, consumer loans, or equipment leases. Investors holding PTCs receive periodic principal and interest payments derived directly from the cash flows generated by the underlying assets. Additionally, in corporate finance and tax contexts, PTC can occasionally refer to Pass-Through Entities, which are business structures that pass income directly to owners' personal tax returns to avoid double taxation.

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