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

Category: C

CONTRACTOR’S OPTION

Stipulation in a deal which provides a contractor with the power to choose certain substances or methods out of a sanctioned list.

CONVERSION PARITY

The market value of the shares of COMMON STOCK into which a CONVERTIBLE BOND can be exchanged, generally computed as: where Convratio is the CONVERSION RATIO and S is the stock price.

CORPORATE FINANCE

(1) The general class of financial transactions that a company may consider to alter its structure, operations, or business focus, including MERGER, ACQUISITION, CARVEOUT, DIVESTITURE, RECAPITALIZATION, LEVERAGED BUYOUT, or MANAGEMENT BUYOUT. (2)

COVERED OPTION

An OPTION position where the seller of the option already holds the UNDERLYING ASSET or cash that must be delivered if the buyer EXERCISES the option. Selling covered options is a relatively

CROSSED TRADE

A practice where ORDERS to buy and sell listed securities are matched (

CYCLICALLY ADJUSTED DEFICIT

Predicting the governments budget loss when the economy is normal. It assumes spending and taxes are unchanged but does not consider the effect of national income versus debt.

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 ASSET

An asset that is set to generate income and one depreciation is claimed usually.

CAPITALIZATION RATE

For example, if a building is purchased for $1,000,000 sale price and it produces $100,000 in positive net operating income (the amount left over after fixed costs and variable costs are subtracted

CAPTIVE CUSTOMER

A customer who does not have realistic alternatives to buying power from the local utility, even if that customer had the legal right to buy from competitors.

CARBON RESERVOIR

An underground oil or gas trap formed in reefs, clastic limestones, chemical limestones, or dolomite.

CAREER LADDER

The process of using a previously earned post-secondary credential to enter another program at a higher level.

CARRIAGE OF GOODS BY SEA ACT

A United States statute governing the rights and responsibilities between shippers of cargo and ship-owners regarding ocean shipments to and from the United States. It is the U.S.

CARRYING COST

In marketing, carrying cost refers to the total cost of holding inventory. This includes warehousing costs such as rent, utilities and salaries, financial costs such as opportunity cost, and inventory costs related

CASH AND CARRY

A system of wholesale trading whereby goods are paid for in full at the time of purchase and taken away by the purchaser.

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