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

Category: C

COLD CALLING

(1). Visiting a prospect who likely does not know the visitor, without a prior appointment. (2). Calling a prospect who likely does not know the caller, for a sales appointment. Known also

COLLAR AGREEMENT

1. In Purchasing, this is an agreement to freeze the maximum limit, ceiling or cap, and/or the minimum limit, or floor. 2. In Investing:, this is a provision in a stock-swap acquisition

COLLECTIVE ACTION

Group’s steps or actions while working toward a common goal. When individuals engage in collective action, the strength of the group’s resources, knowledge and efforts combines all parties to more readily achieve

COMBINED RATIO

A ratio involving loss and expense. It is used in underwriting when the ratio is less than 100%. If the ratio is over 100% than a gain is incurred.

COMMERCIAL ORGANIZATION

A company with an asset that is made to create profit. Income left over is given to employees and shareholders. It can also be reinvested.

CO-MORTGAGOR

A co-signer on a mortgage who is individually or jointly liable for the repayments on a loan for the entire amount. The individual shares ownership of the property with one or more

COMPANY RISK

The risk that occurs due to the operation process due to both internal and external factors. The risks must be covered by the investors.

COMPARISON SHOPPING

Comparing prices before shopping to get the best price. It is done on many big ticket items.

COMPENSATORY TRADE

Selling between two countries that doesn’t involve money but goods. AKA countertrade.

COMPETITIVE STRATEGY

A plan to help a company get the competitive edge against their rival. Its a long term strategy used to discredit the other firm.

COMPLETE SHIPMENT

A shipment tht is sent by a beneficiary of a L/C to fulfill its requirements.

COMPLEX STRUCTURED PRODUCT

A CAPITAL MARKETS financing instrument, such as a BOND or NOTE, that contains embedded COMPLEX OPTIONS or COMPLEX SWAPS that alter RISK and return/YIELD characteristics in unique ways. Since complex structured products

COMPOSITE COST OF CAPITAL

The difference between the returned earned on an investment and the one that wasn’t chosen. AKA data compression.

COMPOUNDING

Estimatig future value by adding compoud interest rates.

COMPRESSION

1. forces that cursh a material squeezing it. 2. combining two or more departments in one. 3. AKA data compression.

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