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

COMPLEX CHOOSER OPTION

An OVERTHECOUNTER COMPLEX OPTION that permits the buyer to choose between an underlying CALL OPTION (with a certain STRIKE PRICE and maturity) and an underlying PUT OPTION (with a different strike and

COMPLEX OPTION

A conventional OPTION that is modified with respect to time, price, and/or payoff to produce unique RISK MANAGEMENT, investment, or speculative results. Certain complex options have risky payout profiles/LIABILITIES and demand considerable

COMPLEX STRUCTURED PRODUCT

A CAPITAL MARKETS financing instrument, such as a BOND or NOTE, that contains embedded COMPLEX OPTIONS or COMPLEX SWAPS that alter RISK and return/YIELD characteristics in unique ways. Since complex structured products

COMPLEX SWAP

An OVERTHECOUNTER SWAP that is modified with respect to time, price, NOTIONAL principal, and/or payoff to produce unique RISK MANAGEMENT, investment, or speculative results. Certain complex swaps have risky payout profiles/LIABILITIES and

COMPLEX SYSTEM

A system of many parts that are related. It is not a simple system and requires more than one level of description. The properties are the result of the combination.

COMPLEXITY

1.the number of math steps to get the answer. Refer to computability theory. 2. having many complicated parts that are linked. It can be related to people and their effect on the

COMPLEXITY FACTOR

A number that shows the level of complexity to any situation. It comes from the parts, type of connections, unknowns, and uncertainty.

COMPLEXITY THEORY

Ideas that try to explain complex happenings in traditional ways. It integrates many theories to do this. It tries to get complex behavior into simple rules and connections.

COMPLIANCE

A confirmation that a manufacturere can do what they say they can according to the rules and standards required by a contract. Refer to conformance.

COMPLIANCE AUDIT

An audit done to see if a firm is following the agreement terms and rules. Refer to compliance test.

COMPLIANCE TEST

A test done to show a firm follows the rules of practice. Refer to substantice test.

COMPLIANT

A party that has done its part of a contract or requirements.

COMPLIANT DOCUMENTS

A bill of lading and other important documents that is needed to get a letter of credit.

COMPONENT

A unique part of a system that is needed to do something, perform a function, or finish a product. They can be removed.

COMPOSITE

Anything made up of many parts that are needed to work as a whole but still keep their individual identity.

COMPOSITE CAN

A container that is made for paper, metal, and plastic. AKA combi container.

COMPOSITE COST OF CAPITAL

The difference between the returned earned on an investment and the one that wasn’t chosen. AKA data compression.

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