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

Category: Finance Dictionary

CONTAINERIZATION

Moving cargo in containers with equipment but there are is no rehandling.

CONTINGENCY TAX

A single event that the government taxes for an economic issue. It can do this for natural distasters, import excess, and recovery.

CONTRACT BUDGET BASELINE

Percentage of the agreed contract price and the calculated expense of the non-priced but allowed changes.

CONTRACT HOLDER

A person or a firm designated as the proprietor of a financial liability or money which is expected to be received (as a return) at a later date. The deal holder gets

CONTRACT UNIT

The amount of the fundamental asset presented through a derivatives deal. For example, the unit of a fold contract signifies 100 ounces of gold. Also known as Trading Unit.

CONTRARIAN

An investor or a plunger who does not act as per conventional wisdom: the person is a pessimist in comparison, to others who are optimist or vice versa. Contrarian ideology is established

CO-OP MAILING

Advertising or offers sent in the same mailing envelope to potential customers from multiple businesses . These businesses work in the same market but have products that do not compete. They co-mail

COST OF CAPITAL

The total costs a firm bears in funding its operations through DEBT and EQUITY, equal to the rate of return needed to induce CAPITAL suppliers to invest or lend. The cost of

CREDIT SUPPORT ANNEX (CSA)

An attachment to the MASTER AGREEMENT framework set forth by the INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION that defines credit terms between two COUNTERPARTIES, including credit thresholds, COLLATERAL requirements, and credit termination events.

CURRENT LIABILITIES

Any LIABILITY contract on the corporate balance sheet with a final maturity of less than one year. Common current liabilities include COMMERCIALPAPER, shortterm NOTES, REPURCHASE AGREEMENTS, DEPOSITS, ACCOUNTS PAYABLE, and the current

CYCLE COUNT

Inventory practice where the stock is checked on a regular basis. Each item is counted once in an accounting period. A fast moving or expensive item is inventoried more than less popular

BACK PAY AWARD

A requirement that retroactive compensation be denied by an employer. They were used in discrimination cases in the federal civil rights laws.

BACKING AWAY

A situation where a MARKET MAKER refuses to perform on a quoted BID, generally in contravention of formal or informal marketmaking rules conveyed through AFFIRMATIVE OBLIGATIONS.

BACTERIA

A cell that is microscopic. It is single cell and exists everywhere. Only a fraction of them are known to science. They are divided in five groups bacilli, cocci, filamentous, spirilla/spirochetes, and

BANDWAGON EFFECT

The idea that people will do something simply becasue others are. The individuals own feelings and beliefs are not considered in this action. AKA herd mentality.

BAREBOAT CHARTER

A charter when the charterer leases a vessel with no crew. A crew is chosen by the party leasing. AKA dry lease.

BASELINE

1. the starting point for comparison. 2. the basic proposal given when a request is sent out. Refer to acquisition program baseline, contracnt budget baseline, and performance measurement baseline. 3. the line

BAYES’ THEOREM

A way to predict when an event will occur based on another event happening or not happening. It was named after Thomas Bayes a probability researcher.

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