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

Category: C

CASH PLUS CONVERTIBLE

A bond that requires cash to be paid as well as an exchange of common stock, typically at the investor’s option to exchange the bond at particular times over the bond’s life,

CASH-OR-NOTHING OPTION

A BINARY OPTION that grants the buyer a payoff equal to a fixed cash amount if the price of the UNDERLYNG market reference breaches the STRKE PRICE at expry See also ALLORNOTHING

CATASTROPHIC LOSS

Events whose consequences are extremely harsh in their severity, relating to one or more losses such as bankruptcy, total loss of assets, or loss of life.

CENTERLINE

Statistically, it is a horizontal line generated to represent the estimated long-term mean of a process in a control chart.

CEO CHURNING

A slang term for CEOs being removed from their positions and replaced with someone new in a quick turnaround fashion in their organizations.

CERTIFICATE OF SATISFACTION

When certifying that the release of a lien on the borrower’s property because payment satisfaction of all due obligations, this formal document is issued by the lender.

CHANGE EQUILIBRIUM

Forces in a balance for driving or impeding change in a community, organization, or society.

CHAOTIC SYSTEM

Mathematical bases of a system where irregular and erratic fluctuations in economic cycles, financial markets, weather, other complex phenomenon, or nonlinear systems with many variables are due to sensitivity to initial changes

CHECKABLE DEPOSITS

Available money allocated to one’s checking account, in a bank or financial institution, allowing the account owner to write a check or draft against that available amount in the account. These accounts

CHIEF INFORMATION OFFICER (CIO)

Most senior executive responsible for the development, implementation, and operation of a firm’s information technology (IT) policy. The CIO oversees all of the firm’s information systems (IS) infrastructure within the organization, and

CHROMATE WASTE

Chromium plating, leather tanning, wood treatment waste stream. Though water soluble, chromates are extremely irritant, and highly toxic, causing liver and kidney damage, and possibly cancer from prolonged exposure.

CIRCUIT BREAKER

1. In General, this is a point in a circuit that has a device that can interrupt and shut down the circuit under specific conditions, such as too much flow, heat, fire.

CLASS ‘A’

A rating typically based on superior quality and/or location. In rental management, it is given to properties that generate a maximum rent-per-square-foot.

CLASSICAL LOGIC

A specific part of formal logic. It is characterized by (1) the non-contradiction of variables and the elimination of double-negative variables, (2) the acknowledging of multiple paths to the same answer, (3)

CLEAN COLLECTION

Documented collection of only the financial document that is processed through the banks without a bill of lading and/or other shipping documents, typically the draft or a bill of exchange. These are

CLEAR BUSINESS SETTING TEST

An IRS or corporate test applied to determine the deductibility of business expenses related to entertainment and dining. The test checks that no other motive is involved when incurring these expenses other

CLOSED DATE

Date commonly available services are not available because of an advance sell out. Such services are hotel rooms or discounted airline tickets.

CLOSED YEAR

Year of termination for a limit or law. An example in taxation is a filing period that ends after a certain number of years. A taxpayer cannot file for a refund and

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