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

Category: C

CAUSE AND EFFECT ANALYSIS

A method leading to the listing of all possible reasons and outcomes associated with a particular problem or situation. It is a group process direct at uncovering possible or probable causal factors

CENTRAL TENDENCY ERROR

Commonly known as the tendency of managers and interviewers to rate all or most of the employees or interviewees as average. A term in performance appraisals or recruitment interviewing process.

CERTIFICATE OF AUTHORITY

To license the operation of a health maintenance organization, the state issues this type of certificate.

CERTIFIED PART

A designated authority approves or certifies that an equipment or machine part was manufactured to the required specifications by a certified manufacturer by issuing this document.

CHANGE IN CONTROL

Condition of a power shift. Arises when a firm is acquired by another firm or when an existing or new stockholder acquires majority or substantially large stockholding.

CHEAPEST-TO-DELIVER (CTD)

The cheapest of a series of ASSETS that are eligible for DELIVERY under an EXCHANGETRADED DERIVATIVE contract; the seller selects from the list of deliverables to determine the asset that will yield

CHEMICAL EXPOSURE

Contact or exposure to a chemical substance by touching, breathing, eating or drinking. This exposure is usually harmful in nature. Different degrees of danger can result with varying symptoms due to exposure

CHI SQUARE

A mathematical / organizational tool used to determine if data classification can be attributed to an underlying law / standard, repeated progression, or if it is solely existing by chance. This is

CHINESE WALL

A process/structure within a BANK, INVESTMENT BANK, or SECURITIES FIRM that separates groups that call on clients and arrange deals (i.e., bankers) from those that are privy to nonpublic information related to

CHRONICALLY ILL INDIVIDUAL

A person certified as lacking some physical or mental ability essential for living independently. A medical professional or social worker must makes this certification .

CIVIL LAW

1. In the modern Western world, it is one of the two major legal systems; the other is common law. Taken from Roman law, it is used in continental Europe, their former

CLASS RATE

Freight rate based on similar shipping characteristics for goods grouped and classified as the same.

CLEAN YOUR SKIRTS

A slang term. Denotes how an investment broker guarantees that accumulating quality investments meets the client’s best interests.

CLEARING MARGIN

MARGIN posted by a CLEARING MEMBER with an EXCHANGE on behalf of clients or proprietary accounts. See also INITIAL MARGIN, VARIATION MARGIN.

CLOSE

1. To complete a deal, discussion, negotiation, or sales presentation. 2. Same meaning as closing price (Definition 2).

CLOSED PROMOTION

A sales message for goods or services limited to a specific consumer group. Example: a hotel’s special offer only to seniors over the age of 65 of a getaway weekend .

CLOSELY HELD STOCK

Shares owned by a specific few individuals, a family, or a specific small group.

CLOSING SALE

In futures trading, a sale transacted to close out a position.

COASTAL TRADE

The shipping of goods or passengers by a ship registered in one country that occurs solely from port to port along the coast of another country. It is typically governed by the

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