Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: C

COMMERCIAL PAPER FUNDING PROGRAM (CPFP)

Created in October 2008 it creates more liquidity on commercial paper market assets. It funds issuers and is back up via the Special Purpose Vehicle. Its goal is to make funding easier

COMMON ACCIDENT CLAUSE

A rule in insurance where the payable amount is limited to a maximum numbe of people with injuries.

COMMON GOOD

The best interest of a company. The good of the whole company is only as good as it is for the indivual.

COMPACT DISC (CD)

A disc that is recordable on one side. Data is stored on rings that are cut by laser. Up to 700 mb can be stored on it. the Dutch firm Phillips invented

COMPANY SEAL

A stamp or embossed emblem that represents the company and its legal name. It shows authorization and can be made of rubber or metal.

COMPARISON UNIVERSE

A portfolio used to rate the work of a manager to keep the competition up. The effectiveness of this is not confirmed.

COMPETENCE

1. related skills and knowledge a person has to do a job. 2. the person’s ability to understand and react. It is settled by a judge. AKA legal capacity.

COMPETITIVE STRUCTURE

The current state of a product in its market and other information like competitors, strength, demand, supply, and ease of entry in the new market.

COMPLETE TREATMENT

Treating water with chemicals, flash mixing, coagulation flucculation, sedimentation, and filtration. This is done in stages.

COMPLEX SWAP

An OVERTHECOUNTER SWAP that is modified with respect to time, price, NOTIONAL principal, and/or payoff to produce unique RISK MANAGEMENT, investment, or speculative results. Certain complex swaps have risky payout profiles/LIABILITIES and

COMPS

The comparison of a companies income and output between the present year and the previous year in an attempt to forsee forthcoming profits or losses.

CONCEPTUAL MODEL

A prototype of an organization showing how well the system meshes with other organizations and how it functions within its own structure.

CONDITION PRECEDENT

A rule in a contract that parties must do what they agree to or a demand can be placed to perform the action required. Refer to conditions concurrent and condition subsequent.

CONDOR SPREAD

A COMPOUND OPTION STRATEGY designed to take advantage of VOLATILITY. Condors are created with the same ratio of PUT OPTIONS or CALL OPTIONS (i.e., one low STRIKE PRICE, one middle low strike,

CONFLICT OF INTEREST

1. a situation that can undermine a person due to self interest and public interest. 2. a situation when parties discharge responsibility to a third party.

CONGRUITY THEORY

The idea that a person is naturally not fond of pressure and want to be at peace with decisions made.

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