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

Category: C

CANCELLABLE CONTRACT

A contract that may be cancelled at any time without penalty Usually requires a certain amount of days’ notice by the party cancelling before the contract is terminated.

CAP AND TRADE

Emissions trading (also known as cap and trade) is a market-based approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants.

CAPITAL STRUCTURE ARBITRAGE

As a hedge fund strategy it involves structuring trades using different instruments relating to a single issuer. For example taking a long position in the debt of a company while shorting equity

CAPITALIZED VALUE

Market capitalization/capitalisation (often market cap) is a measurement of size of a business enterprise (corporation) equal to the share price times the number of shares outstanding (shares that have been authorized, issued,

CAR TITLE LOAN

A car title loan, or simply title loan, is a loan where the borrower provides their car title as collateral for a loan.

CARD DECK

A playing card is a piece of specially prepared heavy paper, thin cardboard, or thin plastic, figured with distinguishing motifs and used as one of a set for playing card games. Playing

CARRIER CODE

Code assigned by IATA and commonly used to identify a carrier. As the same code may have been assigned to different carriers over time, the code is not always unique.

CARVE-OUT

A CORPORATE FINANCE transaction where a company segregates a portion of its business, places it in a separate corporate entity, and sells it to a third party or floats it through an

CASH BASIS

An accountancy reporting method that recognizes cash inflows or outflows when actually expended or received.

CASH CYCLE

Refers to the period of time, often given days, in between the purchasing of the raw materials and the receipt of payment from accounts receivable which was generated from the final sale

CASH FLOW UNDERWRITING

In INSURANCE, a pricing strategy where the PREMIUM charged is less than the EXPECTED LOSS LEVEL. The intent is to generate a large amount of premiums through the underpricing and use proceeds

CASH PLUS CONVERTIBLE

A bond that requires cash to be paid as well as an exchange of common stock, typically at the investor’s option to exchange the bond at particular times over the bond’s life,

CASH-OR-NOTHING OPTION

A BINARY OPTION that grants the buyer a payoff equal to a fixed cash amount if the price of the UNDERLYNG market reference breaches the STRKE PRICE at expry See also ALLORNOTHING

CATASTROPHIC LOSS

Events whose consequences are extremely harsh in their severity, relating to one or more losses such as bankruptcy, total loss of assets, or loss of life.

CENTERLINE

Statistically, it is a horizontal line generated to represent the estimated long-term mean of a process in a control chart.

CEO CHURNING

A slang term for CEOs being removed from their positions and replaced with someone new in a quick turnaround fashion in their organizations.

CERTIFICATE OF SATISFACTION

When certifying that the release of a lien on the borrower’s property because payment satisfaction of all due obligations, this formal document is issued by the lender.

CHANGE EQUILIBRIUM

Forces in a balance for driving or impeding change in a community, organization, or society.

CHAOTIC SYSTEM

Mathematical bases of a system where irregular and erratic fluctuations in economic cycles, financial markets, weather, other complex phenomenon, or nonlinear systems with many variables are due to sensitivity to initial changes

Topic Archives:

Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.