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

Category: Finance Dictionary

CONTRACT NEGOTIATION

Action of two (or more) parties consulting about a possible arrangement of partnership. Their goal is to make an agreement that will be advantageous for all parties involved. Talks may go on

CONTRACT RISK

1. Possibility of loss incurred due to the buyer abrogating the contract, and not because he is unable to pay. 2. Possibility of loss incurred from failure in deal performance. Vendors are

CONVERTIBLE BOND

A hybrid DEBT/EQUITY security that consists of a COUPONbearing BOND and an embedded equity OPTION that allows the investor to convert into a specified number of shares of COMMON STOCK once the

CORRELATION

A statistical measure that indicates the extent to which two or more variables (such as financial ASSET prices) move in the same direction, or different directions. Correlation is often used to price

COVERED WARRANT

A longdated EQUITY OPTION (i.e., three to five years) issued by a financial intermediary on a company

CROWN JEWEL DEFENSE

An ANTITAKEOVER DEFENSE used by a company seeking to avoid a future HOSTILE TAKEOVER by another company. In the event a hostile takeover is successful the CROWN JEWEL provision in the company

CUTTER NUMBER

An alphanumeric code that is unique by libraries like the Dewey decimal classification to make a call number. The number is in alphabetical order and the authors name. It is named after

CYCLONE

When low barometic pressure and strong winds rotate counter clockwise in the southern hemisphere. The south pacific calls it a cyclone, the western atlantic calls it a hurricane, and the eastern pacific

CALCULUS OF VOTING

Refers to any mathematical model which predicts voting behavior by an electorate, including such features as participation rate. A calculus of voting represents an hypothesized decision-making process.

CALL MONEY RATE

Also called the broker loan rate , the interest rate that banks charge brokers to finance margin loans to investors. The broker charges the investor the call money rate plus a service

CALL SIGN

A message, code, or tune that is broadcast by radio to identify the broadcaster or transmitter.

CANADIAN COMPETITION ACT

A federal law that governs business practices in Canada. The Canadian Competition Act includes criminal and civil provisions intended to prevent anti-competitive practices in the marketplace.

CANNED PROGRAM

A software program written to meet the expected customer needs of a certain application. Opposite of custom programs.

CAPITAL FLIGHT

In economics, occurs when assets and/or money rapidly flow out of a country, due to an economic event that disturbs investors and causes them to lower their valuation of the assets in

CAPITALIZATION RATIOS

Also called financial leverage ratios, these ratios compare debt to total capitalization and thus reflect the extent to which a corporation is trading on its equity.

CAPTIVE FINANCE COMPANY

A finance company owned by a manufacturer to finance dealers’ inventories or to make loans to consumers buying the company’s products.

CARBON SEQUESTRATION

Disposal of storage of carbon compound that is controlled and maintained to prevent release into the environment.

CAREER MANAGEMENT

The combination of structured planning and the active management choice of one’s own professional career.

CARRIAGE PAID TO (CPT)

Incoterms or international commerce terms are a series of international sales terms, published by International Chamber of Commerce (ICC) and widely used in international commercial transactions.

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