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

Category: C

CONTRACTUAL INTERMEDIARY

Any entity, like financial institutions which enables a financial agreement between parties. For example, a bank providing mortgage, enabling buying and selling of properties between individuals. The privileges, responsibilities, and remuneration of

CONVERTIBLE PREFERRED STOCK

A class of PREFERRED STOCK that allows the investor to convert it into a specified number of shares of COMMON STOCK once a conversion price is reached. Convertible preferreds pay DIVIDENDS rather

CORRELATION RISK

The RISK of loss arising from a change in the historical relationships, or CORRELATIONS, between ASSETS. Correlation risk can be found in certain COMPLEX OPTIONS and COMPLEX SWAPS and may also impact

CRACK SPREAD

A SPREAD in the energy market reflecting the price differential between crude oil and a refined product, generally gasoline or heating oil; the spread can be traded through a single FUTURE or

C-SHARE

An Investment Trust being a corporate legal entity, may issue C shares (or

CUTTING THE MELON

Slang term used when a company issues more dividends payment with a previous payment.

CYPHERTEXT

Text or a message that is encrypted into a coded human unreadable form. The input must be decrypted to be read once recieved. It is also written as ciphertext.

CABLE FOR AUTHORITY

To pay a request that was sent electronically by starting a negotiation with a bank (usually the issuing bank) of a letter of credit (L/C). Permission must be given to pay the

CALIPER

An instrument for measuring external or internal dimensions, having two hinged legs resembling a pair of compasses and in-turned or out-turned points.

CALL ON A CALL

A COMPOUND OPTION that grants the buyer the right to purchase an underlying CALL OPTION from the seller of the compound. The option is generally purchased when the need for the underlying

CALL SYSTEM

A system to allow residents (patients) to communicate with a nurses’ station from their rooms and from toilet and bathing facilities.

CANARY CALL

A phone-in hosted by Neil Adams and Matthew Gudgin on BBC Radio Norfolk after each Norwich City Football Club match.

CANNIBALIZE

Use (a machine) as a source of spare parts for another, similar machine.

CAPITAL MARKET LINE

A relationship within the CAPITAL ASSET PRICING MODEL (CAPM) that relates the expected return of a PORTFOLIO to its expected RISK (as measured through STANDARD DEVIATION). Under CAPM, all investors will choose

CAPITALIZE

With certain loans, such as subsidized FFEL Loans, the U.S. Department of Education pays the interest that accrues on these loans while the student is enrolled at least halftime and during periods

CAPTIVE MARKET

Markets where the potential consumers face a severely limited amount of competitive suppliers; their only choices are to purchase what is available or to make no purchase at all. Captive markets result

CARBON TETRACHLORIDE (CCI4)

A colorless nonflammable liquid used as a solvent for fats and oils; because of its toxicity its use as a cleaning fluid or fire extinguisher has declined or a colorless toxic volatile

CAREER PATHING

Obstacles or the structure of a promotional table that a person is following in their career.

CARRIED DOWN

Written at the end of an account to show that an amount has to be taken down to the beginning of the next account lower down the same page of the account

CARTOGRAM

A map in which some thematic mapping variable

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