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

Category: C

CAPITALIZATION OF EARNINGS

A method of determining the value of an organization by calculating the net present value (NPV) of expected future profits or cash flows. The capitalization of earnings estimate is done by taking

CAPTIVE

A vehicle established as an authorized INSURER or REINSURER that is used to facilitate a company

CARBON DIOXIDE EQUIVALENT

The universal unit of measurement used to indicate the global warming potential (GWP) of each of the 6 greenhouse gases. It is used to evaluate the impacts of releasing (or avoiding the

CARDIO-PULMONARY RESUSCITATION (CPR)

An emergency procedure for people in cardiac arrest or, in some circumstances, respiratory arrest. CPR is performed both in hospitals and in pre-hospital settings.

CARLOAD

A truckload of cargo that is full and is usually up to 40,000 pounds in weight.

CARRY HOME EXPOSURE

The chances that a harmful substance that has entered the home through whatever means will actually do harm.

CASH ACCUMULATION METHOD

mathematical method of comparing the costs of different cash value life insurance policies. The cash accumulation method assumes that the death benefits for the policies are equal and unchanging. The aggregate total

CASH COLLATERAL

Cash, negotiable instruments, documents of title, securities, deposit accounts, or other cash equivalents, whenever acquired, in which the estate and an entity other than the estate have an interest.

CASH MANAGEMENT

The method a company will use for the purpose of managing the company financial portfolio, such as monies and assets. This portfolio includes everything that a company receives, spends, and invests to

CASH SHORT AND OVER

Describes the difference between expected cash on hand versus cash given out. An entry to the ledger account is posted for the discrepancy amount.

CAST IRON

Contains 1.8 to 4.5 percent carbon by weight versus 0.5 percent or less in carbon steel . Like gray or white iron, one of several types. The higher carbon content increases the

CAUSAL MODELING

Phenomenon of mathematical representation where one or more dependent variables exhibiting cause-and-effect, or causal, relationship with one or more independent variables. Documented examples of causal modeling are ARMA and ARIMA.

CENTRAL REGISTRATION DEPOSITORY (CRD)

A database of the Securities & Exchange Commission (SEC) housing the licensing and complaint information of all brokers and some investment advisors and their representatives.

CERTIFICATE OF ANALYSIS

To certify the quality and purity of pharmaceuticals, and animal and plant products being exported, the appropriate authority issues this authenticated document.

CERTIFIED DATA PROCESSOR (CDP)

A data processing IT professionals who is certified and has the necessary IT experience, has evidence of completed coursework, can provide a recommendation, and has passed a six-part exam to earn this

CHANGE IN ACCOUNTING PRINCIPLES

If a new guideline occurs for accounting practices and procedures, a company must make a notation on the financial statement reflecting how an entry was adjusted based on the new ruling, serving

CHEAP

An ASSET that is perceived by market participants to be inexpensive compared to alternatives or proxies (i.e., the SPREAD is too wide in the case of a BOND or the price to

CHEMICAL ANTIDOTE

Substance that neutralizes another substance. Converts a toxic substance into a harmless compound by reacting with the toxic substance.

CHEWABLE PILL

A POISON PILL defense clause that gives COMMON STOCK shareholders the right to revoke the pill in the face of a bona fide TAKEOVER offer, or which automatically nullifies the pill if

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