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

Category: C

CONTRACT PURCHASE

Kind of instrument sale in which, the seller keeps the instrument for a given period and after that, he buys it back, at an agreed upon price, from the original buyer.

CONTRACTOR’S ALL RISKS INSURANCE

Policy which includes all kinds of risks related to a building project. Usually issued under the combined names of a builder and a client, normally it also contains insurance of public liability.

CONVERGENCE

(1) In the EXCHANGETRADED DERIVATIVE market, the gradual drawing together of SPOT PRICES and FUTURES PRICES as contract maturity approaches; the convergence means that the BASIS, or price difference, gradually narrows. (2)

CORPORATE ETHICS

The broad area dealing with the way in which a company behaves towards, and conducts business with, its internal and external STAKEHOLDERS, including employees, investors, creditors, customers, and regulators. In certain national

COVARIANCE

A statistical measure of the relationship between two variables (e.g., financial ASSET prices), often used to determine the magnitude of CORRELATION. The covariance between two assets can be computed via: where xAj

CROSS-DEFAULT CLAUSE

A clause in a LOAN, BOND, or DERIVATIVE agreement indicating that a technical DEFAULT on one obligation triggers a technical default in all other obligations. Cross default clauses are commonly used in

CUTOFF DATE

The date past a discount or offer is available. The terms are no longer applicable at this date.

CYCLICAL STOCKS

An industries shares that is subject to economic changes. They profit when the economy is good but fall when it is bad.

CALL MONEY

Money lent by a bank or other institution that is repayable on demand.

CALL REPORT

All regulated financial institutions in the United States are required to file periodic financial and other information with their respective regulators and other parties. For banks in the U.S.

CAMPAIGN

A series of military operations intended to achieve a particular objective, confined to a particular area, or involving a specified type of fighting.

CANDLESTICK CHART

A tool used to understand present prices and predicting future price actions. By the understanding of this, the trader knows when best to buy and sell, thereby making more profits in his

CAPITAL

The most important city or town of a country or region, usually its seat of government and administrative center or wealth in the form of money or other assets owned by a

CAPITALIZATION OF PROFITS

Converting a company’s retained earnings, which represent the profits held in the business over time, to capital.

CAPTIVE BANK

An institution intended to provide services to a promoter and his/her associates. Usually, a captive bank is wholly owned subsidiary of a multinational group of companies.

CARBON OFFSET

A reduction in emissions of carbon or greenhouse gases made in in order to compensate for or to offset an emission made elsewhere.

CAREER EXPLORATION

The process of finding a rewarding career path, as well as specific jobs within a particular career path. Think of career exploration and planning as building bridges from your current job/career to

CARRIAGE COST

A trade term requiring the seller to arrange for the carriage of goods by sea to a port of destination, and provide the buyer with the documents necessary to obtain the goods

CARRYBACK LOAN

A loan in which a seller agrees to finance a buyer in order to complete a property sale.

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