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

Category: C

COVERED PUT

An OPTION position where the seller of a PUT OPTION already has sufficient cash on hand to purchase the UNDERLYING ASSET if the buyer EXERCISES the option. Selling covered puts is a

CROSS-MARGIN AGREEMENT

An agreement between two or more EXCHANGES that permits MARGIN requirements to be computed on a net, rather than gross, basis. Such an agreement avoids

CUT-OFF SCORE

The minimum need lenders use for credit approvals. It is based on FICO scoring systems. The score changes from one lender to another based on each institution. The party in need may

CYCLICALLY ADJUSTED SURPLUS

The extra income that can be expected assuming normal economic behavior. Taxes and spending are assumed to be the same.

CALCULUS OF VOTING

Refers to any mathematical model which predicts voting behavior by an electorate, including such features as participation rate. A calculus of voting represents an hypothesized decision-making process.

CALL MONEY RATE

Also called the broker loan rate , the interest rate that banks charge brokers to finance margin loans to investors. The broker charges the investor the call money rate plus a service

CALL SIGN

A message, code, or tune that is broadcast by radio to identify the broadcaster or transmitter.

CANADIAN COMPETITION ACT

A federal law that governs business practices in Canada. The Canadian Competition Act includes criminal and civil provisions intended to prevent anti-competitive practices in the marketplace.

CANNED PROGRAM

A software program written to meet the expected customer needs of a certain application. Opposite of custom programs.

CAPITAL FLIGHT

In economics, occurs when assets and/or money rapidly flow out of a country, due to an economic event that disturbs investors and causes them to lower their valuation of the assets in

CAPITALIZATION RATIOS

Also called financial leverage ratios, these ratios compare debt to total capitalization and thus reflect the extent to which a corporation is trading on its equity.

CAPTIVE FINANCE COMPANY

A finance company owned by a manufacturer to finance dealers’ inventories or to make loans to consumers buying the company’s products.

CARBON SEQUESTRATION

Disposal of storage of carbon compound that is controlled and maintained to prevent release into the environment.

CAREER MANAGEMENT

The combination of structured planning and the active management choice of one’s own professional career.

CARRIAGE PAID TO (CPT)

Incoterms or international commerce terms are a series of international sales terms, published by International Chamber of Commerce (ICC) and widely used in international commercial transactions.

CARRYOVER EFFECTS

In within-subject designs, the undesirable effect that testing participants in one condition has on their later behavior in another condition. Carryover effects are a primary reason that researchers use counterbalancing. See also

CASH CONTROL

Trying to allocate any funds spent in battles & wars as gifts to other family.

CASH FLOW LOAN

A type of debt financing, in which a bank lends funds, generally for working capital, using the expected cash flows that a borrowing company generates as collateral for the loan.

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