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                   Q    R    S    T    U    V    W    X   Y    Z

C
A Nasdaq stock symbol indicating the issuer has been granted a continuance in Nasdaq under an exception to the qualification standards for a limited period.


C-Share
In a family of multi-class mutual funds, the class that has a constant load structure throughout the life of the fund.


Cabinet Crowd
Members of the NYSE that typically trade in inactive bonds. Also known as the inactive bond crowd or book crowd.


Cabinet Security
A stock or bond that is listed under a major financial exchange, but is not actively traded


Cable
In the context of the forex market, the exchange rate between the U.S. dollar and the British pound sterling. Because it is the norm in forex for most major currencies to be quoted against the U.S. dollar on a regular basis, "cable" is a commonly used term.
"Cable" can also be used to refer simply to the British pound sterling.


CAC 40
The French stock market index that tracks the 40 largest French stocks based on market capitalization on the Paris Bourse (stock exchange).

CAD
In currencies, this is the abbreviation for the Canadian Dollar.

Cafeteria Plan
An employee benefit plan that allows staff to choose from a variety of benefits to formulate a plan that best suits their needs.
Also known as "cafeteria employee benefit plan" or "flexible benefit plan".


Cage
A term used to describe the department of a brokerage firm that receives and distributes physical securities.


Caisse Populaire
A cooperative, member-owned financial institution that fulfills traditional banking roles as well as diverse activities such as lending, insurance, investment dealing. Caisses Populaires are primarily found in the province of Quebec in Canada, as caisses populaires are essentially the francophone equivalent of a credit union.


Calculation Agent
An individual who calculates the value of a derivative or the amount owing from each party in a swap agreement.


Calendar Spread
An options or futures spread established by simultaneously entering a long and short position on the same underlying asset but with different delivery months. Sometimes referred to as an inter-delivery, time or horizontal spread.


Calendar Year
The one-year period that begins on Jan 1 and ends on Dec 31, based on the commonly used Gregorian calendar. For individual and corporate taxation purposes, a calendar year will generally comprise all of the year's financial information used to calculate income tax payable.


Call
1. The period of time between the opening and closing of some future markets wherein the prices are established through an auction process.
2. An option contract giving the owner the right (but not the obligation) to buy a specified amount of an underlying security at a specified price within a specified time.


Call Date
The date on which a bond can be redeemed before maturity. If the issuer feels there is a benefit to refinancing the issue, the bond may be redeemed on the call date at par or at a small premium to par.


Call Loan
A loan provided to a brokerage firm and used to finance margin accounts. The interest rate on a call loan is calculated daily. The resulting interest rate is referred to as the call loan rate.


Call Loan Rate
The short term interest rate charged on a secured call loan, usually in margin accounts. Also known as the broker's call.


Call Option
An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument at a specified price within a specific time period


Call Premium
1. The dollar amount over the par value of a callable fixed-income debt security that is given to holders when the security is called by the issuer.
2. The amount the purchaser of a call option must pay to the writer.


Call Price
The price at which a bond or a preferred stock can be redeemed by the issuer. This price is set at the time the security is issued. Also referred to as "redemption price".


Call Protection
A protective provision of a callable security prohibiting the issuer from calling back the security for a period early in its life.


Call Ratio Backspread
A very bullish investment strategy that combines options to create a spread with limited loss potential and mixed profit potential. It is generally created by selling one call option and then using the collected premium to purchase a greater number of call options at a higher strike price. This strategy has potentially unlimited upside profit because the trader is holding more long call options than short ones.


Call Risk
The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem the issue prior to maturity. This means the bondholder will receive payment on the value of the bond and, in most cases, will be reinvesting in a less favorable environment (one with a lower interest rate).


Call Rule
A exchange rule whereby the official bidding price for a cash commodity is competitively established at the end of each trading day and held until the opening of the exchange the following trading day


Call Warrant
A warrant that gives the holder the right to buy the underlying share for an agreed price, on or before a specified date


Callable Bond
A bond that can be redeemed by the issuer prior to its maturity. Usually a premium is paid to the bond owner when the bond is called.
Also known as a "redeemable bond".


Callable Common Stock
Common stock that allows the issuer to call back the stock at a specific price.


Callable Preferred Stock
A type of preferred stock that carries the provision that the issuer has the right to call in the stock at a certain price and retire it. Also known as "redeemable preferred stock".


Called Away
A term used to describe the elimination of a contract due to the obligation of delivery. This occurs if an option is exercised, if a redeemable bond is called before maturity or if a short position held in a security requires delivery.


Calmar Ratio
A ratio used to determine return relative to drawdown (downside) risk in a hedge fund.

Cambist
An expert trader who rapidly buys and sells currency throughout the day.


CAMELS Rating System
An international bank-rating system with which bank supervisory authorities rate institutions according to six factors. The six areas examined are represented by the acronym "CAMELS."


Camouflage Compensation
Compensation that is granted to upper echelon employees, directors, consultants and related parties that is not fully disclosed in mandatory company filings. In other cases, compensation is fully disclosed, but in such a way that it is very difficult for the average investor to decipher the true value of gross pay compensation.


CAN SLIM®
Acronym for William J. O'Neil's investment strategy. CAN SLIM® is based on the seven common characteristics found in his study of the greatest stock market winners of the last 45 years. A thorough discussion of CAN SLIM® can be found in William J. O'Neil's book, How to Make Money in Stocks.
·C = Current Earnings Growth
·A = Annual Earnings Growth
·N = New Products, New Services, New Management, New Price Highs
·S = Supply & Demand
·L = Leader or Laggard
·I = Institutional Sponsorship
·M = Market


Canada Education Savings Grant - CESG
A grant from the Government of Canada paid directly into a beneficiary's Registered Education Savings Plan (RESP). It adds 20% to the first $2,000 in contributions made into an RESP on behalf of an eligible beneficiary each year.


Canada Premium Bond - CPB
A debt instrument issued by the Bank of Canada that offers a higher interest rate than a Canada Savings Bond (CSB) with the same issuance date.


Canada Revenue Agency - CRA
Formerly known as "Revenue Canada", this is Canada's federal agency responsible for income tax and trade regulations.


Canada Savings Bond - CSB
A financial product issued by the Bank of Canada. It offers a competitive rate of interest and guarantees a minimum interest rate.


Canadian Dollars
IBD's earnings section contains reports from Canadian companies who report their quarterly results in Canadian dollars.


Canadian Investor Protection Fund - CIPF
A Canadian not-for-profit organization set up by the investment industry designed to protect investors from the bankruptcy of an individual investment firm.
Accounts are covered for up to $1 million in shortfall of securities, commodity and futures contracts, segregated insurance funds and cash. Shortfall is the difference between the market value of the account and what the insolvent company can return to the customer.


Canadian Mortgage and Housing Corporation - CMHC
A division of the Government of Canada that acts as Canada's national housing agency. The CMHC's mandate is to help Canadians access a variety of affordable housing options. It also researches housing and real estate trends in Canada and around the world, providing research to consumers, businesses and other government divisions. The major activity of the CMHC, and the one for which it is best known, is mortgage loan insurance, which insures approved lenders (such as Canada's chartered banks) against borrower default. Mortgage loan insurance provides approved borrowers access to low-cost mortgage rates. CMHC approved buyers may purchase property with as little as 5% down payment.


Canadian Orginated Preferred Securities - COPrS
A long-term subordinated debt instrument, issued in Canada.


Canadian Securities Course - CSC
An entry-level program offered by the Canadian Securities Institute (CSI) that allows an individual to become a qualified mutual fund representative.


Cancel Former Order - CFO
An order given by an investor instructing his/her broker to cancel a previously placed order.


Cancellation
A notice informing a customer of the cancellation of an erroneous trade that has been credited to his or her account by the broker.


Candlestick
A price chart that displays the high, low, open, and close for a security each day over a specified period of time.


Capital
1. Financial assets or the financial value of assets such as cash.
2. The factories, machinery and equipment owned by a business.


Capital Account
The net result of public and private international investment flowing in and out of a country.


Capital Adequacy Ratio - CAR
A measure of a bank's capital. It is expressed as a percentage of a bank's risk weighted credit exposures.


Capital Allocation Line - CAL
A line created in a graph of all possible combinations of risky and risk-free assets. Also known as the "reward-to-variability ratio".


Capital Appreciation
A rise in the market price of an asset.


Capital Appreciation Fund
A mutual fund that attempts to increase asset value primarily through investments in growth stocks. The heavy investment in growth stocks increases the risk associated with these types of funds. Also called "aggressive growth fund".

Capital Asset
A long-term asset that is not bought or sold in the regular course of business.


Capital Asset Pricing Model - CAPM
A model that describes the relationship between risk and expected return and that is used in the pricing of risky securities.
The general idea behind CAPM is that investors need to be compensated in two ways: time value of money and risk. The time value of money is represented by the risk-free (rf) rate in the formula and compensates the investors for placing money in any investment over a period of time. The other half of the formula represents risk and calculates the amount of compensation the investor needs for taking on additional risk. This is calculated by taking a risk measure (beta) that compares the returns of the asset to the market over a period of time and to the market premium (Rm-rf).


Capital Base
1. The capital acquired during an IPO, or the additional offerings of a company, plus any retained earnings.
2. An initial investment plus subsequent investments made by an investor into their portfolio.


Capital Budgeting
The process of determining whether or not projects such as building a new plant or investing in a long-term venture are worthwhile.
Also known as "investment appraisal".


Capital Cost Allowance - CCA
A rate of depreciation used for income tax purposes only. This term primarily relates to Canadian taxation.


Capital Dividend Account - CDA
A unique account where untaxed gains are deposited within a private company.


Capital Employed
1. The total amount of capital used for the acquisition of profits.
2. The value of all the assets employed in a business.
3. Fixed assets plus working capital.
4. Total assets less current liabilities.


Capital Expenditure - CAPEX
Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment. This type of outlay is made by companies to maintain or increase the scope of their operation. These expenditures can include everything from repairing a roof to building a brand new factory.


Capital Flight
The action of investors moving their securities out of a particular country because of a fear of country-specific risks or political instability, or because of the lure of higher returns in a different country.


Capital Gain
An increase in the value of a capital asset (investment or real estate) that gives it a higher worth than the purchase price. The gain is not realized until the asset is sold. A capital gain may be short term (one year or less) or long term (more than one year) and must be claimed on income taxes.


Capital Gains Distribution
Distributions that are paid to an investment company's shareholders out of the capital gains of the company's investment portfolio.


Capital Gains Exposure - CGE
An assessment of the extent to which a stock fund or other similar investment fund's assets have appreciated or depreciated, which may have tax implications for investors.
Positive exposure would mean that the assets in the fund have appreciated and that shareholders will have to pay taxes on any realized gains on the appreciated assets. Negative exposure denotes that the fund has a loss carryforward that can cushion some of the capital gains.


Capital Gains Treatment
Describes lump-sum distributions of qualified plan balances that accrued before 1974 may be eligible for capital gains treatment.


Capital Goods
Any goods used by an organization to produce other goods.


Capital Goods Price Index - CGPI
An economic index computed by the New Zealand government that measures the change in fixed capital-asset prices in the New Zealand economy from one period to another. The index helps indicate the change in costs for capital assets, which are used by companies and the New Zealand government to produce other goods. The CGPI is produced every quarter.


Capital Growth Strategy
An asset allocation strategy that seeks to maximize capital appreciation, or the increase in value of a portfolio or asset over the long term.


Capital Guaratee Fund
An investment vehicle, offered by certain institutions, that guarantees the investor's initial capital investment from any losses.


Capital Improvement
The addition of a permanent structural improvement or the restoration of some aspect of a property that will either enhance the property's overall value or increases its useful life. Although the scale of the capital improvement can vary, capital improvements can be made by both individual homeowners and large-scale property owners.


Capital Intensive
A process or industry that requires large sums of financial resources to produce a particular good.


Capital Lease
A lease considered to have the economic characteristic of asset ownership.


Capital Loss
The loss incurred when a capital asset (investment or real estate) decreases in value. This loss is not realized until the asset is sold for a price that is lower than the original purchase price.


Capital Market Line - CML
A line used in the capital asset pricing model to illustrate the rates of return for efficient portfolios depending on the risk-free rate of return and the level of risk (standard deviation) for a particular portfolio.


Capital Markets
Markets where capital, such as stocks and bonds, are traded.


Capital Note
Fixed income products issued by companies as a source of short term debt.


Capital Rationing
The act of placing restrictions on the amount of new investments or projects undertaken by a company. This is accomplished by imposing a higher cost of capital for investment consideration or by setting a ceiling on the specific sections of the budget.


Capital Risk
1. The risk an investor faces that he or she may lose all or part of the principal amount invested.
2. The risk a company faces that it may lose value on its capital. The capital of a company can include equipment, factories and liquid securities.


Capital Share
The class of shares offered by a dual-purpose fund that has opportunity for capital appreciation but does not offer the holder any portion of the fixed income earned within the portfolio.


Capital Stock
The common and preferred stock a company is authorized to issue, according to their corporate charter


Capital Structure
The means by which a firm is financed.


Capital Surplus
Equity which cannot otherwise be classified as capital stock or retained earnings. It's usually created from a stock issued at a premium over par value.


Capitalism
An economic system based on a free market, open competition, profit motive and private ownership of the means of production. Capitalism encourages private investment and business, compared to a government-controlled economy. Investors in these private companies (i.e. shareholders) also own the firms and are known as capitalists.


Capitalization
1. In accounting, it is where costs to acquire an asset are included in the price of the asset.
2. The sum of a corporation's stock, long-term debt and retained earnings. Also known as "invested capital".
3. A company's outstanding shares multiplied by its share price, better known as "market capitalization".


Capitalization Rate
According to the Appraisal Institute, it is a method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, by dividing the income estimate by an appropriate rate.


Capitalize
An accounting method used to delay the recognition of expenses by recording the expense as a long-term asset.


Capitalized Interest
The amount of accrued interest that is added to an original principal loan amount because the borrower either has not made large enough payments or has made no payments at all. In such a situation, the borrower is paying interest on interest.


Capitulation
A military term. Capitulation refers to surrendering or giving up.
In the stock market, capitulation is associated with "giving up" any previous gains in stock price as investors sell equities in an effort to get out of the market and into less risky investments. True capitulation involves extremely high volume and sharp declines. It usually is indicated by panic selling.


Capped Option
An option with a pre-established profit cap. A capped option is automatically exercised when the underlying security closes at or above (for a call) or at or below (for a put) the Option's cap price.


Capping
1. The practice of selling large amounts of a commodity or security close to the options expiry date in order to prevent a rise in market price.
2. An attempt to keep a stock's price low or move its price lower by putting selling pressure on it.


Captive Finance Company
A subsidiary whose purpose is to provide financing to customers buying the parent company's product.


Captive Fund
A fund that provides investment services solely to the one firm holding ownership.


Caput
A type of exotic option that consists of a call option on a put option. Essentially it gives the holder the right to purchase another option. This type of option is also known as a "compound option".


Carbon Trade
An idea presented in response to the Kyoto Protocol that involves the trading of greenhouse gas (GHG) emission rights between nations.
Cardboard Box Index
An index used by some investors to gauge industrial production by using the output of cardboard boxes to predict the purchases of non-durable consumer goods.


Carried Interest
Used for resource companies that have a stake in a resource property. The owner of the property doesn't have to make a proportionate contribution to the expenses incurred for the project.


Carrot Equity
Equity which allows for the opportunity to purchase more equity if the company reaches certain financial goals


Carrying Broker
A term used to refer to a commodities exchange member who elects to clear trades on behalf of another party.


Carrying Charge
A cost associated with holding a financial instrument or storing a physical commodity over a defined period of time.


Carrying Charge Market
A futures market where contracts with maturities further into the future have higher future prices.


Carrying Cost Of Inventory
The cost of maintaining inventory in a company's warehouse.


Carrying Value
An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance sheet. For assets, the value is based on the original cost of the asset less any depreciation, amortization or impairment costs made against the asset. For a company, carrying value is a company's total assets minus intangible assets and liabilities such as debt.
Also known as "book value".


Cartel
A small group of producers of a good or service who agree to regulate supply in an effort to control or manipulate prices.


Carve-out
1. Sometimes known as a partial spinoff, a carve out occurs when a parent company sells a minority (usually 20% or less) stake in a subsidiary for an IPO or rights offering.
2. Where an established brick-and-mortar company hooks up with venture investors and a new management team to launch an Internet spinoff.


Cash
Legal tender or coins that can be used in exchange goods, debt, or services. Sometimes also including the value of assets that can be converted into cash immediately, as reported by a company


Cash Account
A regular broker account in which the customer is required by Regulation T to pay for securities within two days after a purchase is made.


Cash Accounting
An accounting method where receipts are recorded during the period they are received, and the expenses in the period in which they are actually paid.


Cash Advance
A loan taken out against a line of credit or credit card, typically imposing higher-than-normal interest charges.


Cash and Carry Trade
A trading strategy that involves the simultaneous trading of two similar securities in order to recognize an arbitrage profit. Also known as "basis trading" or "buying the basis."


Cash And Cash Equivalents - CCE
An item on the balance sheet that reports the value of a company's assets that are cash or can be converted into cash immediately.

Cash Balance Pension Plan
A pension plan under which an employer credits a participant's account with a set percentage of his or her yearly compensation plus interest charges. A cash balance pension plan is a defined-benefit plan. As such, the plan's funding limits, funding requirements and investment risk are based on defined-benefit requirements: as changes in the portfolio do not affect the final benefits to be received by the participant upon retirement or termination, the company solely bears all ownership of profits and losses in the portfolio.


Cash Basis
A major accounting method that recognizes revenues and expenses at the time physical cash is actually received or paid out. This contrasts to the other major accounting method, accrual accounting, which requires income to be recognized in a company's books at the time the revenue is earned (but not necessarily received) and records expenses when liabilities are incurred (but not necessarily paid for).


Cash Budget
An estimation of the cash inflows and outflows for a business.


Cash Charge
A charge off made by a company against earnings that requires an initial outlay of cash


Cash Commodity
The actual or physical commodity underlying a futures contract.


Cash Conversion Cycle
The duration between the purchase of a firm's inventory and the collection of accounts receivable for the sale of that inventory. Also known as cash cycle.


Cash Cost
A cash basis accounting cost recognition process that classifies costs as they are paid for in cash, and is recognized in the general ledger at the point of sale. This method is contrary to the accrual cost recognition method, which directly influences the operating cash flow figure.


Cash Cow
1. One of the four categories (quadrants) in the BCG growth-share matrix that represents the division within a company that has a large market share within a mature industry.
2. A business, product or asset that, once acquired and paid off will produce consistent cash flow over its lifespan.

Cash Delivery
1. The same-day settlement of a currency trade in the forex market. This means that delivery and settlement of the transaction occur on the same date that the currency trade is made. In order for this to occur, the forex position must be opened and closed within the same trading day.
Also referred to as "same-day settlement".
2. In the context of futures contracts, a settlement term in a contract that stipulates that the underlying asset of the contract will not be delivered on the delivery date - rather, the net cash value of the position will be transferred to the applicable party instead.


Cash Distribution Per Unit - CDPU
A measure, used in Canada, that refers to the amount of cash payments made to individual unitholders of a specified income trust, as designated by the Canada Revenue Agency. The ratio is calculated by taking the total amount of cash distributions divided by the total amount of unit shares issued


Cash Dividend
Money paid to stockholders, normally out of the corporation's current earnings or accumulated profits. All dividends must be declared by the board of directors and are taxable as income to the recipients.


Cash Earnings Per Share - Cash EPS
A measure of financial performance that looks at the cash flow generated by a company on a per share basis. This differs from basic earnings per share (EPS), which looks at the net income of the company on a per share basis. The higher a company's cash EPS, the better it is considered to have performed over the period. A company's cash EPS can be used to draw comparisons to other companies or to the company's own past results


Cash Flow
1. A revenue or expense stream that changes a cash account over a given period. Cash in-flows usually arise from one of three activities - financing, operations or investing - though they also occur as a result of donations or gifts in the case of personal finance. Cash out-flows result from expenses or investments. This holds true for both business and personal finance.
2. An accounting statement - the statement of cash flows - that shows the amount of cash generated and used by a company in a given period, calculated by adding non-cash charges (such as depreciation) to net income after taxes. Cash flow can be attributed to a specific project, or to a business as a whole. Cash flow can be used as an indication of a company's financial strength.


Cash Flow After Taxes - CFAT
A measure of financial performance that looks at the company's ability to generate cash flow through its operations. It is calculated by adding back non-cash accounts such as amortization, depreciation, restructuring costs and impairments to net income.
Also known as "After-Tax Cash Flow".


Cash Flow from Financing Activities
A category in the cash flow statement that accounts for external activities such as issuing cash dividends, adding or changing loans, or issuing and selling more stock. The formula for cash flow from financing activities is as follows:
Cash Received from Issuing Stock or Debt - Cash Paid as Dividends and for Re-Acquisition of Debt/Stock


Cash Flow From Investing Activities
An item on the cash flow statement that reports the aggregate change in a company's cash position resulting from any gains (or losses) from investments in the financial markets and operating subsidiaries, and changes resulting from amounts spent on investments in capital assets such as plant and equipment.


Cash Flow Loan
Borrowing cash typically to meet day-to-day operations or acquisitions. Reasons for needing a cash flow loan could be seasonal-demand changes, business expansion or changes in the business cycle


Cash Flow Per Share
A measure of a firm's financial strength, calculated as follows:


Cash Flow Per Share From Operations
Derived by adding depreciation, depletion and amortization to the company's net income and dividing this figure by the shares outstanding. Brackets [ ] will surround the Cash Flow figure if the net income being used to derive the data is not from the most recently completed fiscal year and will indicate the year the figure corresponds to.


Cash Flow Return on Investment - CFROI
A valuation model that assumes the stock market sets prices based on cash flow, not on corporate performance and earnings.


Cash Flow Statement
One of the quarterly financial reports any publicly traded company is required to disclose to the SEC and the public. The document provides aggregate data regarding all cash inflows a company receives from both its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given quarter.


Cash Investment
Short-term obligations, usually ninety days or less, that provide a return in the form of interest payments


Cash Management Bill - CMB
A short-term security sold by the U.S. Department of the Treasury. The maturity on a CMB can range from a few days to six months. The money raised through these issues is used by the Treasury to meet any temporary shortfalls.


Cash Market
The market for a cash commodity or actual, as opposed to the market for its futures contract.


Cash On Delivery - COD
A type of transaction in which payment for a good is made at the time of delivery. If the purchaser does not make payment when the good is delivered, then the good will be returned to the seller.
Payment can be made by cash, certified check or money order, depending on what is stipulated in the shipping contract.


Cash Price
The price of the purchase and delivery of cash commodities.


Cash Return on Gross Investment - CROGI
A measure of financial performance calculated as gross cash flow after taxes divided by gross investment.

Cash Settlement
A settlement method used in certain future and option contracts whereby, upon expiry or exercise, the seller of the financial instrument does not deliver the actual but transfers the associated cash position.


Cash Surrender Value
The sum of money an insurance company will pay to the policyholder or annuity holder in the event his or her policy is voluntarily terminated before its maturity or the insured event occurs. This cash value is the savings component of most permanent life insurance policies, particularly whole life insurance policies. Also known as "cash value", "surrender value" and "policyholder's equity".


Cash Transaction
A transaction that is settled with cash on the same day as the trade.


Cash Value Added - CVA
A measure of the amount of cash generated by a company through its operations. It is computed by subtracting the 'operating cash flow demand' from the 'operating cash flow' from the cash flow statement.


Cash-on-Cash Return
A rate of return often used in real-estate transactions. The calculation determines the cash income on the cash invested:


Cash-on-Cash Yield
A comparative measure using the total amount of distributions paid upon an income trust divided by its market value.


Cash-or-Nothing Call
A type of option whose payoff is set to a specified fixed price if the final asset price is above the strike price if not, the payoff is set to zero.


Cash-or-Nothing Put
A type of option whose payoff is set to a specified fixed price if the final asset price is below the strike price if not, the payoff is set to zero.


Cashier's Check
A check written by a financial institution on its own funds. It is then signed by a representative of the financial institution and made payable to a third party. A customers who purchases a cashier's check pays for the full face value of the check and usually also pays a small premium for the service. These checks are secured by the funds of the issuer - usually

Cashless Exercise
A transaction that is used when exercising employee stock options (ESO). Essentially, what you do here is borrow enough money from your broker to exercise the options. You then simultaneously sell enough shares to pay for the purchase, taxes, and broker commissions.


Casino Finance
Any investment strategy that is classified as extremely high risk.


Casualty Insurance
A broad category of coverage against loss of property, damage or other liabilities, including such things as vehicle insurance, liability insurance, theft insurance and elevator insurance.


Catalyst
Something that initiates or causes an important event to happen. Originally a term used in chemistry for the volatile (active) chemical in a formula.


Catastrophe Bond - CAT
A high-yield debt instrument that is usually insurance linked and meant to raise money in case of a catastrophe such as a hurricane or earthquake. It has a special condition that states that if the issuer (insurance or reinsurance company) suffers a loss from a particular pre-defined catastrophe, then the issuer's obligation to pay interest and/or repay the principal is either deferred or completely forgiven


Category Killer
Large companies that put less efficient and highly specialized merchants out of business.
Category killers can attain this status by being cheaper, easier, bigger, or more popular than the competition.


Cats and Dogs
A slang term referring to speculative stocks that have short or suspicious histories for sales, earnings, dividends, etc.


Caveat Emptor
Another way to say, "let the buyer beware."


CBOE Nasdaq Volatility Index - VXN
A volatility index on the Chicago Board Options Exchange, known by its ticker symbol VXN. The VXN is a measure of implied volatility for the Nasdaq 100 (NDX).


Ceiling
The highest level of allowance permitted for a certain good, rate, or transaction.


Celtic Tiger
A nickname for Ireland during its boom years of the late 1990s, when it enjoyed an average annual growth rate of over 6.5%. The first boom was in the late 1990s when investors (many of them tech firms) poured in, drawn by the country's favorable tax rates - some as much as 20-50% lower than the rest of Europe. It ended with the bursting of the internet bubble in 2001.
The second boom in 2004 was largely the result of Ireland opening its doors to workers from new EU member nations. Increases in house prices, continued investment by multinationals, growth in jobs and tourism, a resurgence of the IT industry and the U.S. economic recovery have all been cited as contributing factors for the revival.


Central Bank
The entity responsible for overseeing the monetary system for a nation (or group of nations). Central banks have a wide range of responsibilities - from overseeing monetary policy to implementing specific goals such as currency stability, low inflation and full employment. Central banks also generally issue currency, function as the bank of the government, regulate the credit system, oversee commercial banks, manage exchange reserves and act as a lender of last resort.


CEO Confidence Survey
A monthly survey of 100 CEOs from a variety of industries in the U.S. economy. The survey is conducted, analyzed and reported by the Conference Board, and it seeks to gauge the economic outlook of CEOs, determining their concerns for their businesses, and their view on where the economy is headed. A reading above 50 indicates that the CEOs surveyed are more bullish than bearish on their economic outlook.


CEO, New
The month and year in which a firm appointed a new Chief Executive Officer. Date shown is based on effective date of the appointment. This is based on changes made within the past two years. Item appears as "New CEO" on the Datablock of Daily Graphs.


Certainty Equivalent
The return that would be accepted for the chance at a higher, but uncertain, amount.


Certificate Of Deposit - CD
A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate and can be issued in any denomination. CDs are generally issued by commercial banks and are insured by the FDIC. The term of a CD generally ranges from one month to five years.


Certificate of Government Receipts (COUGRs)
U.S. Treasury fixed-income securities stripped of their coupon payments, providing payment of face value. These are synthetic securities offered by the firm A.G. Becker Paribas.


Certificate of Indebtedness
A short-term fixed income security issued by the United States Treasury that has a coupon.



Certificate of Participation - COP
A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues.


Certificated Stock
A stock of commodity that has been inspected by qualified representatives and determined to be of basis grade.
Certificates of Accrual on Treasury Securities - CATS
Issued by the U.S. Treasury and stripped by a financial intermediary, these products are sold at a significant discount from face value and pay no interest during their lifetime. However, they return full face value and cannot be called away.


Certified Annuity Specialist - CAS
A certification indicating expertise and commitment to fixed-rate and variable annuities. Individuals with the CAS designation offer clients expert advice in regards to investment opportunities in annuities.


Certified Check
A check certified by a bank to show sufficient funds within the account meet the amount the check is drawn for.


Certified Financial Planner™ - CFP™
The CFP™ legal team has provided their official definition, along with trademarks: CFP™, Certified Financial Planner™,and marks are certification marks owned by the Certified Financial Planner Board of Standards, Inc. These marks are awarded to individuals who successfully complete the CFP Board's initial and ongoing certification requirements.


Certified Fund Specialist - CFS
A certification indicating an individual's expertise in mutual funds and the mutual fund industry. These individuals advise clients on which mutual funds best suit their particular needs. The CFS designation does not license individuals to buy or sell mutual funds however, in many cases Certified Fund Specialists do have this license, which enables them to buy and sell the funds for their clients.


Certified Investment Management Consultant - CIMC
CIMC's have completed extensive course work and passed NASD proctored examinations for Levels I and II of the Institute for Certified Investment Management Consultants' course. CIMCs must also meet the Institute's requirements concerning experience in consulting and managed accounts, and adhere to its Code of Ethics and continuing education requirements.


Certified Investment Management Specialist - CIMS
A designation by the Institute for Investment Management Consultants to associate members who pass an exam and meet financial services work-experience requirements


Certified Management Accountant - CMA
An accounting designation whose holder has formally demonstrated a mix of expertise in financial accounting and strategic management. This certification expands on financial accounting by adding management skills that help to make strategic business decisions based on financial information.


Certified Public Accountant - CPA
A designation given by the American Institute of Certified Public Accountants to those who pass an exam and meet work-experience requirements.


Certified Senior Consultant - CSC
A certification indicating knowledge in key issues facing aging members of the population (individuals in their 50s, 60s and 70s) including Social Security, Medicare, Medicaid planning, housing and retirement.


Ceteris Paribus
Latin phrase that translates approximately to "holding other things constant" and is usually rendered in English as "all other things being equal". In economics and finance, the term is used as a shorthand for indicating the effect of one economic variable on another, holding constant all other variables that may affect the second variable.


Chaikin Oscillator
An oscillator created by subtracting a 10-day EMA from a 3-day EMA of the accumulation/distribution line.


Chameleon Option
An option that has the ability to change its structure, should certain pre-determined terms of the contract be met.


Chande Momentum Oscillator
A technical momentum indicator invented by the technical analyst Tushar Chande. It is created by calculating the difference between the sum of all recent gains and the sum of all recent losses and then dividing the result by the sum of all price movement over the period. This oscillator is similar to other momentum indicators such as the Relative Strength Index and the Stochastic Oscillator because it is range bounded (+100 and -100).


Change
1. For an option or futures contract, the difference between the current price and the previous day's settlement price.
2. For an index or average, the difference between the current value and the previous day's market close.
3. For a stock or bond quote, the difference between the current price and the last trade of the previous day.


Changer
The name given to a clearing member that is willing to assume the opposite position of a futures contract within a larger alternative exchange, of which it also is a clearing member.


Channel
1. The system of intermediaries between the producers, suppliers, consumers, etcetera, for the movement of a good or service.
2. The technical range between support and resistance levels that a stock price has traded in for a specific period of time.


Channel Check
A method of independent stock analysis whereby company information is supplied by third parties.


Channel lines (of a stock, upper and lower)
On a stock chart, channel lines are determined by drawing a straight line connecting three of the price peaks and a somewhat parallel line connecting three of the price lows during the same period, usually covering a couple of months. Channel lines drawn over too short a period of time can be premature and incorrect.


Channel Stuffing
A deceptive business practice used by a company to inflate its sales and earnings figures by deliberately sending retailers along its distribution channel more products than they are able to sell to the public.


Chaos Theory
Also referred to as non-linear dynamics, chaos theory is a mathematical concept explaining that it is possible to get random results from normal equations. The main precept behind this theory is the underlying notion of small occurrences significantly affecting the outcomes of seemingly unrelated events.


Chapter 10
Named after the U.S. bankruptcy code 10, chapter 10 discusses how a company can file for court protection.


Chapter 11
Named after the U.S. bankruptcy code 11, Chapter 11 is a form of bankruptcy that involves a reorganization of a debtor's business affairs and assets. It is generally filed by corporations which require time to restructure their debts.
Chapter 11 gives the debtor a fresh start, subject to the debtor's fulfillment of its obligations under its plan of reorganization.


Chapter 13
A U.S. bankruptcy proceeding in which the debtor undertakes a reorganization of his/her finances under the supervision and approval of the courts. The reorganization must involve the debtor submitting and following through with a plan to repay outstanding creditors within three to five years. In most circumstances, the repayment plan must provide a substantial payback to creditors - at least equal to what they would receive under other forms of bankruptcy - and it must, if needed, use 100% of the debtor's income for repayment.


Chapter 7
A bankruptcy proceeding in which a company stops all operations and goes completely out of business. A trustee is appointed to liquidate (sell) the company's assets, and the money is used to pay off debt


Charge Card
A card that charges no interest but requires the user to pay his/her balance in full upon receipt of the statement, usually on a monthly basis. While it is similar to a credit card, the major benefit offered by a charge card is that it has much higher, often unlimited, spending limits.


Charge Off
1. A debt that is deemed uncollectable and written off. Also known as a bad debt.
2. A one time expense incurred by a company that negatively affects earnings.


Chargeback
The charge a credit card merchant pays to a customer after the customer successfully disputes an item on his or her credit card statement.



Charitable Donation
A gift made by an individual or an organization to a nonprofit organization, charity or private foundation. Charitable donations are commonly in the form of cash, but can also take the form of real estate, motor vehicles, appreciated securities, clothing and other assets or services.


Charitable Lead Trust
A trust designed to reduce beneficiaries' taxable income by first donating a portion of the trust's income to charities and then, after a specified period of time, transferring the remainder of the trust to the beneficiaries.


Charitable Remainder Trust
A tax-exempt irrevocable trust designed to reduce the taxable income of individuals by first dispersing income to the beneficiaries of the trust for a specified period of time and then donating the remainder of the trust to the designated charity.


Charter
A legal document that provides for the creation of a corporate entity. A corporation's charter is issued by either a federal or a regional government and effectively creates a legal entity out of the business, which existed only as a partnership, sole proprietorship or similar business before incorporating.
Also referred to as "articles of incorporation".


Chartered Bank
A financial institution whose primary roles are to accept and safeguard monetary deposits from individuals and organizations, and to lend money out. The details vary from country to country, but usually a chartered bank in operation has obtained government permission on some level to do business in the banking sector.


Chartered Financial Analyst - CFA
A professional designation given by the CFA Institute (formerly AIMR) that measures the competence and integrity of financial analysts. Candidates are required to pass three levels of exams covering areas such as accounting, economics, ethics, money management and security analysis.


Chartered Insurance Professional - CIP
A professional designation granted by the the Insurance Institute of Canada to insurance agents in the property and casual segments of the industry. The designation was created to promote a standard in the field and gives agents professional standing in the field for the benefit of both employers and clients.


Chartered Investment Councelor - CIC
A designation by the Investment Counsel Association to those holding CFAs and currently working as investment counselors


Chartered Market Technician - CMT
A professional designation given by the Market Technicians Association (MTA) to financial professionals who prove their proficiency in technical analysis.


Chartist
Another name for a technical analyst. This is a person who uses charts to identify patterns that can suggest future activity.


Chasing Nickels Around Dollar Bills
A slang term describing what a company's management does when it decides to trim small, trivial costs instead of cutting larger, more serious costs. All too often, managers will cut the difficult costs as a last resort, when in fact the company would be much better off if the larger costs had been dealt with earlier.


Chasing the Market
Entering or exiting of a trend after the trend has already been well established. Investors are often unaware of the fact that they are chasing the market which can dent the value of a portfolio. This type of investing is often seen as irrational as decisions are often based on emotion instead of careful analysis of the value of the investment.


Chastity Bond
A bond designed to prevent unwanted takeovers by having a maturity that is activated once a takeover is complete.


Chattel Mortgage
A term used when describing a mobile or manufactured home mortgage. Specifically when the home is not financed with the land.


Cheap Stock
The illegal practice of issuing stock options at artificially low prices shortly before an initial public offering.
Often underwriters will require a company to have more qualified management before they can go public. They attract these qualified individuals by giving options with a low exercise price.

Cheapest to Deliver - CTD
The least expensive underlying product that can be delivered upon expiry to satisfy the requirements of a derivative contract.


Check
A written, dated, and signed instrument that contains an unconditional order from the drawer that directs a bank to pay a definite sum of money to a payee.


Check Representment
A method whereby checks from accounts with insufficient funds are repeatedly deposited until funds are available.


Checking Account
A deposit account for funds intended for quick turnover. Checking accounts offer very low interest on unused cash balances.


Cherry Picking
1. The act of investors choosing investments that have performed well within another portfolio in anticipation that the trend will continue.
2. Relating to bankruptcy proceedings whereby the courts uphold contracts favorable to bankrupt companies, but annul those that are unfavorable.


CHF
In currencies, this is the abbreviation for the Swiss Franc.


Chicago Board Of Trade - CBOT
A commodity exchange established in 1848 that today trades in both agricultural and financial contracts. The CBOT originally traded only agricultural commodities such as wheat, corn and soybeans. Now, the CBOT offers options and futures contracts on a wide range of products including gold, silver, U.S. Treasury bonds and energy.

Chicago Board Options Exchange - CBOE
Founded in 1973, the CBOE is an exchange that focuses on options contracts for individual equities, indexes and interest rates. The CBOE is the world's largest options market. It captures a majority of the options traded. It is also a market leader in developing new financial products and technological innovation, particularly with electronic trading.
The CBOE is also referred to as the "See-bo".



Chicago Mercantile Exchange - CME
The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and a small amount on agricultural products.


Chief Executive Officer - CEO
This is the senior manager who is responsible for overseeing the activities of an entire company.


Chief Financial Officer - CFO
This is the senior manager who is responsible for overseeing the financial activities of an entire company. This includes signing checks, monitoring cash flow, and financial planning


Chief Information Officer - CIO
A company executive who is responsible for the management, implementation and usability of information and computer technologies. The CIO will analyze how these technologies can benefit the company or improve an existing business process and will then integrate a system to realize that benefit or improvement.


Chief Operating Officer - COO
The senior manager who is responsible for managing the company's day-to-day operations and reporting them to the chief executive officer (CEO).

Chief Security Officer - CSO
The company executive responsible for the security of personnel, physical assets and information in both physical and digital form. The importance of this position has increased in the age of information technology as it has become easier to steal sensitive company information.


Child Tax Credit
A credit given to taxpayers for each dependent child that is under the age of 17 at the end of the tax year.


Chill
Special restrictions that can be placed on a given security by the Depository Trust Company (DTC). Chill restrictions are intended to limit the potential for problems within the financial marketplace, and they can be placed on a security for various reasons.


China Concepts Stock
The stock of a company whose assets or earnings have significant activities in China.


Chinese Wall
The ethical (not physical) barrier between different divisions of a financial (or other) institution to avoid conflict of interest. A Chinese Wall is said to exist, for example, between the corporate-advisory area and the brokering department to separate those giving corporate advice on takeovers from those advising clients about buying shares. The "wall" is thrown up to prevent leaks of corporate inside information, which could influence the advice given to clients making investments, and allow staff to take advantage of facts that are not yet known to the general public.


Choice Market
A market in which the spread between the bid and the ask for a given financial instrument is zero - meaning that, at any point in time, the instrument can be bought for the same price as it can be sold in the market. This type of market only occurs when there is extreme liquidity and a limited number of intermediaries.


Choke Price
An economic term used to describe the price at which the quantity demanded of a good is equal to zero.


Chooser Option
An option where the investor has the opportunity to choose whether the option is a put or call at a certain point in time during the life of the option.
Choppy Market
A stock market condition whereby prices swing up and down considerably but with no resulting overall price movement in either direction


Christmas Club
A type short-term savings account that usually pays out the full account balance to its account holders once each year - right before Christmas. These accounts pay depositors monthly interest on their account balances and often punish early withdrawals by forfeiting interest earned if money is taken out before a given date.


Christmas Tree
An options trading strategy that is generally achieved by purchasing one call option and selling two other call options at different strike prices. When drawn structurally, the strike price of the long option is located below the two successively higher written calls.


Churn Rate
The percentage of subscribers to a service that discontinue their subscription to that service in a given time period.
In order for a company to expand its clientele, its growth rate (i.e. its number of new customers) must exceed its churn rate.


Churning
1. An unethical practice employed by some brokers to increase their commissions by excessively trading in a client's account. This practice violates the NASD Fair Practice Rules. It is also referred to as "churn and burn", "twisting" and "overtrading".
2. A period of heavy trading with few sustained price trends and little movement in stock market indexes


CINS Number
An acronym standing for the "CUSIP International Numbering System," which provides identification of international securities.


Circuit Breaker
Refers to any of the measures used by stock exchanges during large sell-offs to avert panic selling. Sometimes called a "collar."



Circular Trading
A fraudulent trading scheme where sell orders are entered by a broker who knows that offsetting buy orders, the same number of shares at the same time and at the same price, either have been or will be entered.


Circus Swap
A swap with the features of both a currency swap and an interest rate swap.


Civil Money Penalty - CMP
A punitive fine imposed by a civil court on an entity that has profited from illegal or unethical activity. The Securities and Exchange Commission imposes civil money penalties that are usually equal to the gains made from whatever activity it has deemed to be illegal or unethical.


Class
In the most general form, a class is a group of securities with similar features.


Class A Shares
A classification of common stock that may be accompanied by more or less voting rights than Class B shares. Although Class A shares are often thought to carry more voting rights than Class B shares, this is not always the case. Companies will often try to disguise the disadvantages associated with owning shares with less voting rights by naming those shares "Class A", and those with more voting rights "Class B".


Class Action
An action where an individual represents a group in a court claim. The judgment from the suit is for all the members of the group (class).


Class B Shares
A classification of common stock that may be accompanied by more or less voting rights than Class A shares. Although Class A shares are often thought to carry more voting rights than Class B shares, this is not always the case. Companies will often try to disguise the disadvantages associated with owning shares with less voting rights by naming those shares "Class A", and those with more voting rights "Class B".


Classical Economics
Classical Economics refers to work done by a group of economists in the 18th and 19th centuries. They developed theories about the way markets and market economies work. The study was primarily concerned with the dynamics of economic growth. It stressed economic freedom and promoted ideas such as laissez-faire and free competition.


Classified Board
A structure for a board of directors in which a portion of the directors serve for different term lengths, depending on their particular classification. Under a classified system, directors serve terms usually lasting between one and eight years; longer terms are often awarded to more senior board positions (i.e. chairman of the corporate governance committee).
Classified boards are often referred to as "staggered boards", although staggered boards and classified boards have somewhat different structures. Staggered boards need not be classified, but classified boards are inherently staggered.


Classified Shares
The separation of company equity into more than one class of common shares, usually called "Class A" and "Class B."


Clawback
1. Previously given monies or benefits that are taken back due to specially arising circumstances.
2. A retraction of stock prices or of the market in general.


Clean Balance Sheet
Refers to a company whose balance sheet has very little or no debt.


Clean Price
The price quoted for a bond excluding accrued interest.


Clean Sheeting
The fraudulent act of purchasing a life insurance policy without disclosing a pre-existing terminal illness or disease. This type of fraud is often done with both the knowledge of the purchaser and the agent involved.



Clearing
The procedure by which an organization acts as an intermediary and assumes the role of a buyer and seller for transactions in order to reconcile orders between transacting parties.


Clearing Corporation
An organization associated with an exchange to handle the confirmation, settlement and delivery of transactions, fulfilling the main obligation of ensuring transactions are made in a prompt and efficient manner. They are also referred to as "clearing firms" or "clearing houses".


Clearing Fee
A fee charged by clearing corporations for their services provided to investment firms.


Clearing House
An agency or separate corporation of a futures exchange responsible for settling trading accounts, clearing trades, collecting and maintaining margin monies, regulating delivery and reporting trading data. Clearing houses act as third parties to all futures and options contracts - as a buyer to every clearing member seller and a seller to every clearing member buyer.


Clearing Member Trade Agreement - CMTA
An agreement by which an investor may enter derivative trades with a limited number of different brokers and later consolidate these trades with one brokerage house for clearing.


Clearing Price
The specified monetary value assigned to a security or asset. This price is determined by the bid and ask process of buyers and sellers interested in trading the security


Clearstream International
A European clearing corporation, this organization supports over 2500 different companies in 80 locations worldwide


Cleave
The occurrence of a gemstone breaking into two or more pieces during the cutting or polishing process. Naturally occurring impurities in the stones increase the likelihood that a stone will break apart.

Click Through Rates
The percent of individuals viewing a Web page who click on a specific banner ad appearing on the page.


Clientele Effect
The theory that a company's stock price will move according to the demands and goals of investors in reaction to a tax, dividend or other policy change affecting the company. The clientele effect assumes that investors are attracted to different company policies, and that when a company's policy changes, investors will adjust their stock holdings accordingly. As a result of this adjustment, the stock price will move.


Cliff Vesting
A type of vesting that occurs entirely at a specified time rather than gradually.


Climax
Following a protracted period of selling or buying, a point wherein market trends are retarded or discontinued.


Climax Top
When a stock suddenly advances at a much faster rate for one or two weeks after an advance of many months. Generally occurs in the final “stages� of a stock's price advance, indicating a leveling off or decrease in future price movements. Often accompanied by a gap up in price. Based on William J. O'Neil's research, many big market leaders top in this fashion. (Also, see Gap and Exhaustion gap)

Clinton Bond
A bond that is said to have no principal, no interest and no maturity


Cliquet
An extended option that periodically settles and resets its strike price at the level of the underlying during the time of settlement.


Clone Fund
A mutual fund that replicates the performance or strategy of an existing mutual fund or index through the use of derivatives.


Close
1. The end of a trading session. The closing price is quoted in the newspaper.
2. The final procedure in a home sale in which documents are signed and recorded. This is the time when the ownership of the property is transferred.


Close Period
The time period between the completion of a company's balance sheet and the announcing of the results to the public


Close Position
The act of taking the opposite position of the current position thereby getting out of a position in a particular stock or security.
Also referred to as "Closing Transaction."


Closed-End Funds
Closed-end investment companies have a fixed number of shares to sell. Their shares are traded on the major exchanges and fluctuate according to supply and demand in the market. You do not have a guarantee that you can sell your shares at net asset value like you do in open-end mutual funds.


Closed-end Indenture
A term in a bond contract that guarantees that the collateral used to back the bond issue cannot be used again to back another bond issue. This is the opposite of an open-end indenture in which more than one bond can be backed by a single collateral.


Closed-End Investment
When an investment company issues a fixed number of shares in an actively managed portfolio of securities. The shares are traded in the market just like common stock.


Closed-End Lease
A rental agreement that puts no obligation on the lessee (the person making periodic lease payments) to purchase the leased asset at the end of the agreement. Also called a "true lease", "walkaway lease" or "net lease".


Closed-End Management Company
An investment-management company that sells a limited number of shares to investors on an exchange by way of an initial public offering. For investors to sell the shares they purchased from the closed-end management company, there must be buyers willing to buy the shares at a price determined by the market. The most common type of closed-end management company is a closed-end mutual fund.


Closed-Market Transaction
An order placed by a company's insider to buy or sell restricted securities from within the company's own treasury. Appropriate documentation must be filed before the order can be placed.

Closely Held Shares
A term referring to shares held by individuals closely related to a company

Closet Indexing
A portfolio strategy used by some portfolio managers to achieve returns similar to those of their benchmark index, without exactly replicating the index.


Closing
1. The end of a trading session. The closing price is quoted in the newspaper.
2. The final procedure in a home sale in which documents are signed and recorded. This is the time when the ownership of the property is transferred.


Closing Bell
A bell that rings to signify the end of a trading session.


Closing Costs
The numerous expenses (over and above the price of the property) that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, deed-recording fee and credit report charges. Also known as "settlement costs".




Closing Statement
A document commonly used in real estate transactions, detailing the fees, commissions, insurance, etc. that must be transacted for a successful transfer of ownership to take place. This document is prepared by a closing agent and is also known as a "settlement sheet".


Closing Tick
The number of stocks which closed higher than their previous trade minus the number of stocks whose closing prices were lower than their previous trade. A positive closing tick means that there was buying at the close and indicates strength, the opposite is true for a down closing tick.


CLP
In currencies, this is the abbreviation for the Chili Peso.


Club Deal
A syndicated loan agreement in which the participants in the syndicate are specifically requested by the borrower


CNN Effect
The temporary shifting of consumer spending that occurs as a result of gripping news.


CNY
In currencies, this is the abbreviation for the China Yuan Renminbi.


Co-pay
A type of insurance policy where the insured pays a specified amount of out-of-pocket expenses for health-care services such as doctor visits and prescriptions drugs at the time the service is rendered, with the insurer paying the remaining costs. However, unlike coinsurance, where the insured is required to pay a certain percentage of the covered costs, co-pay plans require the insured to pay a specified dollar amount.


Coattail Investing
An investment strategy where investors mimic the trades of well-known and historically successful investors.


Cockroach Theory
A market theory that states bad news tends to be released in bunches.


Coefficient Of Variation - CV
A statistical measure of the dispersion of data points in a data series around the mean. It is calculated as follows:
The coefficient of variation represents the ratio of the standard deviation to the mean, and it is a useful statistic for comparing the degree of variation from one data series to another, even if the means are drastically different from each other


Coincident Indicator
An economic factor that varies directly and simultaneously with the business cycle, thus indicating the current state of the economy.


Coinsurance
A co-sharing agreement between the insured and the insurer under a health-insurance policy which provides that the insured will cover a set percentage of the covered costs after the deductible has been paid. Similar to co-pay insurance plans except co-pays require the insured to pay a set dollar amount at the time the service is rendered.


Cold Calling
A method used by brokers to obtain new business by making unsolicited calls to potential clients.


Collaborative Commerce - C-commerce
Optimization of supply and distribution channels in order to capitalize upon the global economy and use new technology efficiently.


Collar
1. A protective options strategy that is implemented after a long position in a stock has experienced substantial gains. It is created by purchasing an out of the money put option while simultaneously writing an out of the money call option.


Collateral
Properties or assets that are offered to secure a loan or other credit. Collateral becomes subject to seizure on default.


Collateral Trust Bond
A bond that is secured by a financial asset - such as stock or other bonds - that is deposited and held by a trustee for the holders of the bond.


Collateralized Bond Obligation - CBO
An investment-grade bond backed by a pool of junk bonds. Junk bonds are typically not investment grade, but because they pool several types of credit quality bonds together, they offer enough diversification to be "investment grade."


Collateralized Debt Obligation - CDO
An investment-grade security backed by a pool of bonds, loans and other assets. CDOs do not specialize in one type of debt but are often non-mortgage loans or bonds.


Collateralized Loan Obligation - CLO
A special purpose vehicle (SPV) with securitization payments in the form of different tranches. Financial institutions back this security with receivables from loans


Collateralized Mortgage Obligation - CMO
A type of mortgage backed security that creates separate pools of pass-through rates for different classes of bondholders with varying maturities, called tranches. The repayments from the pool of pass-through securities are used to retire the bonds in the order specified by the bonds prospectus.


Collection Agency
A company hired by lenders to recover funds that are past due or accounts that are in default. The lending company itself may also have a division or subsidiary that acts as its collection agency. A collection agency is hired after a company has made multiple attempts to collect what is owed to it


Collective Fund
An investment vehicle that combines tax exempt assets of various individuals and organizations in order to create a well diversified portfolio.

Com-Dev Company
Short form for "Commercial Development Company." These companies build and sell/lease commercial real-estate, software, or applications for wide-scale commercial use.


Combat Zone
An area designated as a war zone during a specified period. Members of the military do not need to claim taxable income they earn while working in a combat zone.


Combination
When an investor holds a position in both call and put options on the same asset.


Combined Loan To Value Ratio - CLTV Ratio
A ratio used by lenders to determine the risk of default by prospective homebuyers when more than one loan is used. In general, lenders are willing to lend at CLTV ratios of 80% and above to borrowers with a high credit rating.


Commerce
The buying and selling of goods, especially on a large scale.


Commercial
A term used to refer to any party or organization involved in producing, transporting, or merchandising a commodity.


Commercial Bank
A financial institution that provides services such as a accepting deposits and giving business loans.


Commercial Grain Stock
A term used to describe any grain stored within U.S. Borders.



Commercial Mortgage-Backed Securities - CMBS
Similar to a mortgage-backed security, but secured by loans with commercial property instead of residential property.


Commercial Paper
An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories and meeting short-term liabilities. Maturities on commercial paper rarely range any longer than 270 days. The debt is usually issued at a discount, reflecting prevailing market interest rates.


Commercial Real Estate
Property that is solely used for business purposes.


Commercial Trader
A classification used by the Commodity Futures Trading Commission (CFTC) for traders that use the futures market primarily to hedge their business activities.


Commingled Fund
A type of mutual fund consisting of assets from several accounts that are blended together. Sometimes called a "pooled fund."


Commingling (Commingled)
1. In securities, it is the mixing of customer-owned securities with brokerage-owned securities.
2. In trust banking, it is the pooling of individual customer accounts into a fund, a share of which is owned by each contributing customer. This is similar to a mutual fund.
3. In real estate, it is the illegal act of a broker combining clients' funds with personal funds because, by law, a broker is required to use a separate trust or escrow fund to temporarily hold a client's funds.


Commission
A service charge assessed by an agent in return for arranging the purchase or sale of a security or real estate. The commission must be fair and reasonable, considering all the relevant factors of the transaction. Commissions vary widely from broker to broker.


Commission House
A brokerage or merchant firm which buys and sells futures contracts for customer accounts.

Commitment Fee
A fee lenders charge their borrowers for unused credit or credit that has been promised at a specified future date.


Commitments of Traders Report - COT
A report published every Friday by the Commodity Futures Trading Commission (CFTC) that seeks to provide investors with up-to-date information on futures market operations and increase the transparency of these complex exchanges.


Committed Facility
A credit facility whereby terms and conditions are clearly defined by the lending institution and imposed upon the borrowing company.


Commodities Exchange
An entity, usually an incorporated non-profit association, that determines and enforces rules and procedures for the trading of commodities and related investments, such as commodity futures. Commodities exchange also refers to the physical center where trading takes place.


Commoditization
1. A situation when illiquid financial contracts are changed or modified in a way that promotes trading and results in a more liquid market.
2. Making a product into a commodity.


Commodity
1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often used as inputs in the production of other goods or services. The quality of a given commodity may differ slightly, but it is essentially uniform across producers. When they are traded on an exchange, commodities must also meet specified minimum standards, also known as a basis grade.
2. Any good exchanged during commerce, which includes goods traded on a commodity exchange.


Commodity Block Currency
A currency that belongs to a country whose economy is strongly correlated with the price fluctuations of a certain commodity.


Commodity Channel Index - CCI
An oscillator used in technical analysis to help determine when an investment vehicle has been overbought and oversold. The Commodity Channel Index, first developed by Donald Lambert, quantifies the relationship between the asset's price, a moving average (MA) of the asset's price, and normal deviations (D) from that average. It is computed with the following formula:


Commodity Exchange Act - CEA
An act passed in 1936 by the U.S. Government that provides federal regulation of all futures trading activities. This act replaced the Grain Futures Act of 1922.


Commodity Futures Contract
An agreement to buy or sell a set amount of a commodity at a predetermined price and date. Buyers use these to avoid the risks associated with the price fluctuations of the product or raw material, while sellers try to lock in a price for their products. Like in all financial markets, others use such contracts to gamble on price movements.


Commodity Futures Modernization Act - CFMA
An act passed in 2000 by the U.S Government that reaffirmed the authority of the Commodity Futures Trading Commission for five years as the regulatory body of the American futures markets. The most significant outcome from this act was the allowance for the trading of single stock futures.


Commodity Futures Trading Commission - CFTC
A U.S. federal agency established by the Commodity Futures Trading Commission Act of 1974. It ensures the open and efficient operation of the futures markets. There are five futures markets commissioners who are appointed by the president (subject to Senate approval).


Commodity Index
An index that tracks a basket of commodities to measure their performance. These indexes will often be traded on exchanges, allowing investors to gain easier access to commodities without having to enter the futures market. The value of these indexes fluctuates based on the underlying commodities, and this value can be trade on the exchange much in the same way as stock-index futures.


Commodity Pool
A fund that collects investor contributions for use in future and commodity option trading.

Commodity Pool Operator - CPO
Persons or limited partnerships responsible for investing a commodity pool's assets in commodity-futures and options positions.


Commodity Research Bureau Index - CRB
An index that measures the overall direction of commodity sectors. The CRB was designed to isolate and reveal the directional movement of prices in overall commodity trades.


Commodity Selection Index - CSI
A technical momentum indicator that attempts to identify which commodities are the most suitable for short-term trading. The larger the CSI value, the stronger is the trend and volatility characteristics associated with the asset. This indicator should only be used by traders who can handle large amounts of volatility as it indicates strong trending, but reversals are always possible.


Commodity Swap
A swap where exchanged cash flows are dependent on the price of an underlying commodity. This is usually used to hedge against the price of a commodity.


Commodity Trading Advisor - CTA
An individual or a firm, registered with the Commodity Futures Trading Commission, that receives compensation for giving people advice on options, futures and the actual trading of managed futures accounts. Registration for CTAs is done through the National Futures Association, a self-regulated organization responsible for reviewing and accepting registrations.


Common Gap
A price gap found on a price chart for an asset. These gaps are brought about by normal market forces and, as the name implies, are very common. They are represented graphically by a non-linear jump or drop from one point on the chart to another point.


Common Size Balance Sheet
A company balance sheet that displays all items as percentages of a common base figure. This type of financial statement can be used to allow for easy analysis between companies or between time periods of a company.



Common Size Financial Statement
A company financial statement that displays all items as percentages of a common base figure. This type of financial statement allows for easy analysis between companies or between time periods of a company.


Common Size Income Statement
An income statement in which each account is expressed as a percentage of the value of sales. This type of financial statement can be used to allow for easy analysis between companies or between time periods of a company.


Common Stock
A security that represents ownership in a corporation. Holders of common stock exercise control by electing a board of directors and voting on corporate policy. Common stockholders are on the bottom of the priority ladder for ownership structure. In the event of liquidation, common shareholders have rights to a company's assets only after bondholders, preferred shareholders and other debtholders have been paid in full.
In the U.K., these are called "ordinary shares


Community Property
A U.S. state-level legal distinction of a married individual's assets. Property acquired by either spouse during the course of a marriage is considered community property. For example, an IRA in the name of an individual with a spouse, accumulated during the course of the marriage, would be considered community property.


Company Description
A brief description of the company's operations. This summarized item is based on the information provided in the company's annual report or 10K. It is updated annually or when major changes in company operations occur.


Company Name
The name a stock is registered with the Securities & Exchange Commission. The displayed name may not match its registered name due to space limitations.


Company Owned Life Insurance - COLI
A type of life insurance policy taken out by a company on the lives of employees that the company believes to be of vital importance to the operations of the firm. Under these plans, the company pays the premium on the insurance but is also the plan's primary beneficiary.


Comparables
A valuation technique in which a recently sold asset is used to determine the value of a similar asset. This technique is often used in real estate to determine the initial sale price of a property


Comparative Advantage
A situation in which a country, individual, company or region can produce a good at a lower opportunity cost than that of a competitor.


Competitive Bid
A process whereby an underwriter submits a sealed bid to the issuer. The issuer awards the contract to the underwriter with the best price and contract terms.


Competitive Tender
A method of distributing debt issues. Bids are submitted by primary distributors and those who bid the highest receive the debt issue.


Compliance Department
The department within a brokerage firm that oversees the trading and market-making activities of the firm.

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