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

Category: C

CASH CONVERSION PERIOD

measures how long a firm will be deprived of cash if it increases its investment in resources in order to expand customer sales. It is thus a measure of the liquidity risk

CASH FLOW MANAGEMENT

The management and analysis of a company’s cash flows. Careful cash flow management allows a company to estimate the amount of cash that it will have on hand at any one time,

CASH OUTFLOW

When an organization pays money out for it operations, investments or financing activities.

CASH-AND-CARRY ARBITRAGE

An ARBITRAGE strategy where a profit can be secured by borrowing funds, using the proceeds to buy the ASSET, and selling a FORWARD or FUTURE on that asset. The arbitrage only exists

CATALYTIC CONVERTER

Pollution reduction device that eliminates or reduces substantially emissions. Usually attached to a car or engine exhaust system. Converts three specific substances from harmful to benign. Carbon monoxide converts from poisonous gas

CEDING COMPANY

The insurance company that transfers to another insurance company the insurance it has written.

CENTRE FOR EUROPEAN ECONOMIC RESEARCH

A nonprofit, limited liability company (llc) research institution in Germany. It is involved with the gathering of research data that organizes information on economic issues and policies. The institution provides advice to

CERTIFICATE OF DEPOSIT (CD)

A time DEPOSIT issued by a BANK to a depositor that pays a fixed or variable INTEREST RATE; in most instances the deposit represents a senior, unsecured LIABILITY of the issuing bank.

CHAIN WEIGHTED CPI

As an alternative to the Consumer Price Index, this measurement is used to remove any biases related to new products, any changes in quality, and discounted pricing. The chain weighted CPI uses

CHANGE OF AIRCRAFT

The transfer from one aircraft to another aircraft belonging to the same or different airline without a change in the flight number. Known also as a change of equipment or change of

CHECK OUT TIME

Latest standard time set by a hotel that a hotel guest must formally vacate his or her room without incurring additional charges for another day’s stay. Following a check out, hotels provide

CHEMICAL REACTION

Molecular recombining of two or more chemicals or chemical substances to either produce one or more different chemicals or compounds, or alter the properties of the original chemicals or substances. Most reactions

CHICAGO SCHOOL OF ECONOMICS

One of the most influential bodies of economic thought in recent times. Major ideological defender of conservative economics and capitalism. This monetarist school is associated with the economics department at the University

CHLORINATION

Chlorine added to water. Oxidizes organic contaminants. Kills many microorganisms. Refer also to disinfection.

CHURN RATE

The Contrast to customer retention rate. The higher a churn rate is, the lower a customer retention rate is, and vice versa.

CLAIMS OCCURRENCE BASIS

Determination of whether a CLAIM is covered by an INSURANCE contract. If the contract is written on a claims occurrence basis and a claim arises from an event when the policy is

CLASSICAL DICHOTOMY

The notion that changes to the variables that affect monetary values will not impact real values such as interest rates, employment, industrial output. This is a classical economic concept.

CLAYTON ACT

Amended antimonopoly provisions of the Sherman Act of 1890 by US federal legislation in 1914. It includes the prohibition of (1) price discrimination and tying agreements, (2) sales based on exclusive-dealing contracts,

CLEANUP MERGER

Consolidating by the purchasing firm of the purchased company. Known also as takeout merger.

CLICK THROUGH RATE (CTR)

Website’s users (or visitors) percentage that get to the advertiser’s website by clicking on an advertisement residing on another site. Advertisers use CTR to rate a website. The rate typically ranges from

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