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Superglossary - Finance
Category: Economy and Finance > Finance
Date & country: 16/12/2013, US
Words: 5424

Purchase of a controlling interest (or percent of shares) of a company's stock. A leveraged buy out

Rules and practices that govern management of an organization.

Cabinet Crowd
NYSE members who trade bonds with a low daily traded volume. See

Cabinet Security
A stock or bond listed on a major exchange with low daily traded volume.

Exchange rate between British pound sterling and the U.S. dollar.

CAC 40 Index
A broad-based index of common stocks composed of 40 of the 100 largest companies listed on the forwa

A section of a brokerage firm used for receiving and disbursing funds.

List of new issues scheduled to come to market shortly.

Calendar Effect
Describes the tendency of stocks to perform differently at different times, including preformance an

Calendar Spread
Applies to derivative products. A strategy in which there is a simultaneous purchase and sale of opt

An option that gives the holder the right to buy the underlying futures contract.

Call An Option
To exercise a call option.

Call Date
A date before maturity, specified at issuance, when the issuer of a bond may retire part of the bond

Call Feature
Part of the indenture agreement between the bond issuer and buyer describing the schedule and price

Call Loan
A loan repayable on demand. Sometimes used as a synonym for broker loan or broker overnight loan.

Call Money Rate
Also called the broker loan rate , the interest rate that banks charge brokers to finance margin loa

Call Option
An option contract that gives its holder the right (but not the obligation) to purchase a specified

Call Premium
Premium in price above the par value of a bond or share of preferred stock that must be paid to hold

Call Price
The price, specified at issuance, at which the issuer of a bond may retire part of the bond at a spe

Call Protection
A feature of some callable bonds that establishes an initial period when the bonds may not be called

Call Provision
An embedded option granting a bond issuer the right to buy back all or part of an issue prior to mat

Call Risk
The combination of cash flow uncertainty and reinvestment risk introduced by a call provision.

Call Swaption
A swaption in which the buyer has the right to enter into a swap as a fixed-rate payer. The writer t

Called Away
Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity und

Can Get

Canadian Agencies
Refers to over-the-counter trading. 'I have a buyer who will pay for the stock'. Uusually a standar

Canadian Dealing Network (CDN)
Agency banks established by Canadian Banks in the U.S.

Canadian Exchange Group (CEG)
The organized OTC market of Canada. Formerly known as the Canadian Over-the-Counter Automated Tradin

The CEG is an association among the Toronto Stock Exchange, the Montreal Exchange, the Vancouver Sto

Cannot Compete
To void an order to buy or sell from (1) the floor, or (2) the trader/salesperson's scope. In Autex,

Cannot Complete
In the context of general equities, cannot accommodate customers at that price level (i.e., compete

In the context of general equities, inability to finish an order on a principal or agency basis, giv

An upper limit on the interest rate on a floating-rate note (FRN) or an adjustable-rate mortgage (AR

Credit grantors' measurement of a person's ability to repay loans.

Capital Account
Money invested in a firm.

Capital Allocation Decision
Net result of public and private international investment and lending activities.

Capital Asset
Allocation of invested funds between risk-free assets and the risky portfolio.

Capital Asset Pricing Model (CAPM)
A long-term asset, such as land or a building, not purchased or sold in the normal course of busines

Capital Budget
An economic theory that describes the relationship between risk and expected return, and serves as a

Capital Budgeting
A firm's planned capital expenditures.

Capital Builder Account (CBA)
The process of choosing the firm's long-term capital assets.

Capital Expenditures
A Merrill Lynch brokerage account that allows investors to access the loan value of his or her eligi

Capital Flight
Amount used during a particular period to acquire or improve long-term assets such as property, plan

Capital Formation
The transfer of capital abroad in response to fears of political risk.

Capital Gain
Expansion of capital or capital goods through savings, which leads to economic growth.

Capital Gains Distribution
When a stock is sold for a profit, the capital gain is the difference between the net sales price of

Capital Gains Tax
A distribution to the shareholders of a mutual fund out of profits from selling stocks or bonds, tha

Capital Gains Yield
The tax levied on profits from the sale of capital assets. A long-term capital gain, which is achiev

Capital Goods
The price change portion of a stock's return.

Capital International Indexes
Goods used by firms to produce other goods, e.g., office buildings, machinery, equipment.

Capital Lease
Market indexes maintained by Morgan Stanleythat track major stock markets worldwide.

Capital Lease
A long-term lease of property, plant, or equipment in which the lessee acquires essentially all the

Capital Loss
A lease obligation that has to be capitalized on the balance sheet.

Capital Market
The difference between the net cost of a security and the net sales price, if the security is sold a

Capital Market Efficiency
The market for trading long-term debt instruments (those that mature in more than one year).

Capital Market Imperfections View
The degree to which the precent asset price accurately reflects current information in the market pl

Capital Market Line (CML)
The view that issuing debt is generally valuable, but that the firm's optimal choice of capital stru

Capital Rationing
The line defined by every combination of the risk-free asset and the market portfolio. The line repr

Capital Requirements
Placing limits on the amount of new investment undertaken by a firm, either by using a higher cost o

Capital Shares
Financing required for the operation of a business, composed of long-term and working capital plus f

Capital Stock
One of two types of shares in a dual-purpose investment company, which entitle the holder to the app

Capital Structure
Stock authorized by a firm's charter and having par value, stated value, or no par value. The number

Capital Surplus
The makeup of the liabilities and stockholders' equity side of the balance sheet, especially the rat

Capital Turnover
Amounts of directly contributed equity capital in excess of the par value.

Calculated by dividing annual sales by average stockholder equity (net worth). The ratio indicates h

Used to describe industries that require large investments in capital assets to produce their goods,

Capitalization Method
The debt and/or equity mix that funds a firm's assets.

Capitalization Rate
A method of constructing a replicating portfolio in which the manager purchases a number of the most

Capitalization Ratios
The rate of interest used to calculate the present value of a number of future payments.

Capitalization Table
Also called financial leverage ratios, these ratios compare debt to total capitalization and thus re

A table showing the capitalization of a firm, which typically includes the amount of capital obtaine

Capitalized Interest
Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for

Captive Finance Company
Interest that is not immediately expensed, but rather is considered as an asset and is then amortize

A company, usually a subsidiary that is wholly owned, whose main function is financing consumer purc

An exotic option. It represents a call option on a put option. That is, you

Carrot Equity
A loose quantity term sometimes used to describe the amount of a commodity underlying one commodity

British slang for an equity investment with the added benefit of an opportunity to purchase more equ

Carrying Charge

Carrying Costs
The fee a broker charges for carrying securities on credit, such as on a margin account.

Carrying Value
Costs that increase with increases in the level of investment in current assets.

Book value.

A group of businesses or nations that act together as a single producer to obtain market control and

Cash and Carry
The value of assets that can be converted into cash immediately, as reported by a company. Usually i

Cash and Equivalents
Applies to derivative products. Combination of a long position in a stock/index/commodity and short

Cash And Equivalents
Cash plus investments of very high liquidity and safety, such as money market funds and treasury bil

Cash Asset Ratio
The value of assets that can be converted into cash immediately, as reported by a company. Usually i

Cash Basis
Cash and marketable securities divided by current liabilities. See

Cash Budget
Refers to the accounting method that recognizes revenues and expenses when cash is actually received

Cash Commodity
A forecasted summary of a firm's expected cash inflows and cash outflows as well as its expected cas

Cash Conversion Cycle
The actual physical commodity, as distinguished from a futures contract.

Cash Cow
The length of time between a firm's purchase of inventory and the receipt of cash from accounts rece

Cash Cycle
A company that pays out most of its earnings per share to stockholders as dividends. Or, a company o

Cash Deficiency Agreement
In general, the time between cash disbursement and cash collection. In net working capital managemen

Cash Delivery
An agreement to invest cash in a project to the extent required to cover any cash deficiency the pro

Cash Discount
The provision of some futures contracts that requires not delivery of underlying assets but settleme

Cash Dividend
An incentive offered to purchasers of a firm's product for payment within a specified time period, s

Cash Earnings
A dividend paid in cash to a company's shareholders. The amount is normally based on profitability a

Cash Flow
A firm's cash revenues less cash expenses, which excludes the costs of depreciation.

Cash Flow After Interest And Taxes
In investments, cash flow represents earnings before depreciation, amortization, and non-cash charge

Cash Flow Break-Even Point
Net income plus depreciation.