Copy of `Oesterreichische Nationalbank - Dictionary`

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Oesterreichische Nationalbank - Dictionary Category: Economy and Finance Date & country: 04/10/2008, AU Words: 3913

click on the back button
name of button on web page; clicking/hitting button moves user back to the last page...

clipped coin
Precious metal coins from which small amounts have been removed by clipping the edges. It was to prevent this that graining and edge inscriptions were adopted....

cliquet option
At specific dates during the life of the option, any gain made on a cliquet option is locked-in and the strike is reset at the new level of the underlying asset. Should the underlying drop during any one period, the intrinsic value over that period is zero and the strike is reset at an attractively low level for a call. At maturity, the intrinsic v...

cliquet option
Some exotic options allow the buyer to lock-in the level of profit that would have been earned at some point in the life of the option had it then been exercised. This sets a floor on the payoff at expiration. Cliquets and shouts are similar except that the lock-in point is a preset date in the case of a cliquet, but determined by the buyer in the ...

CLO
Simply stated, a `collateralized loan obligation`, or `CLO`, is a debt security collateralized by commercial loans. Perhaps more commonly, however, the term `CLO` is used to refer to the entire structured finance transaction in which multiple classes of debt or equity securities are issued by a special purpose vehicle (an `SPV`) whose assets consis...

closed forward contract
A Closed Forward is settled on the agreed delivery date. The closed forward is used when a client is certain that a payment must be made or received by a particular date. The forward points for this contract are usually calculated to the settlement date....

closed network
telecommunications network used for a specific purpose, such as a payment system, and to which access is restricted....

closed-end fund
A fund that does not issue additional units after the subscription period....

closed-end home equity loan
loan that`s for a specific term vs. a line of credit....

closed-end loan
A closed-end loan is a nonrevolving loan with a set amount of money to be repaid at a specific time as agreed with the borrower on concluding the loan contract. OeNBfoa 3-4/01...

closed-end real estate fund
A private real estate fund with a fixed fund size and a limited term, typically 8-15 years....

cluster analysis
a collection of statistical techniques for creating homogeneous groups of cases or variables. Clusters are formed using distance functions. The elements in a cluster have relatively small distances from each other and relatively larger distances from elements outside of a cluster....

CMFB
The CMFB is an advisory committee of senior statisticians from government statistical offices, central banks, the Commission and the European Central Bank (ECB). On cases which raise questions concerning statistical treatment regarding the calculation of government deficit and debt, Eurostat consults the CMFB before taking its final decision....

CMFB
The Committee for Monetary, Financial and Balance of Payments statistics (CMFB) was established by a Council Decision in 1991 to assist the European Commission in drawing up and implementing work programmes concerning monetary, financial and balance of payments statistics. The CMFB is the forum for co-ordination of statisticians from the National S...

CMYK
color spectrum cyan/magenta/yellow/black...

Coase theorem
the idea that private negotiations between people will lead to an efficient resolution of externalities regardless of who has the property rights, as long as the property rights are defined....

Coase theorem
The proposition that if property rights exist and transactions costs are low, private transactions are efficient. Equivalently, with property rights and low transaction costs, there are no externalities....

code of ethics
Code of ethics of the Institute of Internal Auditors sets forth standards of conduct for members of the IIA and certified internal auditors to effectively discharge their responsibilities. The code of ethis calls for high standards of honesty, objectivity, diligence, and loyalty....

codecision procedure
a decision making procedure in the first pillar where the European Parliament and the Council of Ministers decide together on legislation. Currently there are more than 20 different decision making procedures in the EU....

coefficient
A coefficient is a constant used to multiply another value....

coefficient of determination
A statistic that is widely used to determine how well a regression fits is the coefficient of determination (or multiple correlation coefficient), . represents the fraction of variability in y that can be explained by the variability in x. In other words, explains how much of the variability in the y`s can be explained by the fact that they are rel...

coefficient of determination
The coefficient of determination (R2) represents the proportion of variation in the dependent variable that has been explained or accounted for by the regression line. The value of the coefficient of determination may vary from zero to one. A coefficient of determination of zero indicates that none of the variation in Y is explained by the regressi...

coefficient of determination
The coefficient of determination statistic, more commonly known as the R-squared value, can be interpreted as the proportion of the variation in the dependent variable that is statistically explained by the associated independent variable from the regression model. Coefficient of determination, or R-squared values, (1 ³ r2 ³ 0) indicate the amoun...

COFER database
Currency Composition of Official Foreign Exchange Reserves (COFER) The COFER database COFER is an IMF database that keeps end-of-period quarterly data on the currency composition of official foreign exchange reserves. The currencies identified in COFER are: U.S. dollar, Euro, Pound sterling, Japanese yen, Swiss francs, and Other currencies....

cohort
A group of people sharing a common demographic experience who are observed through time. The cohort of persons born in the same year is known as a generation, while the cohort of persons married in the same year is called a marriage cohort or a marriage generation....

COICOP
Classification Of Individual COnsumption by Purpose;...

COICOP
COICOP is part of a set of classifications of the functions of expenditure, also known as `functional` classifications and which have formed part of the System of National Accounts (SNA) since 1968. `Functional` classifications are designed to classify certain transactions of producers and of three institutional sectors, namely household, general g...

coin in mint condition
Mint condition is a term sometimes used to denote pieces in an uncirculated state....

coinsurance
Payment of a fixed percentage of the total charge (i.e., 20%, 30%, etc.)....

coinsurance
The percentage of costs of medical care that a patient pays out of pocket. Coinsurance is most commonly found in indemnity, fee-for-service insurance and the PPO market. Its absence in the HMO arena is one of the strong marketing appeals of HMOs....

collar floater
Collar floaters are floating rate notes with a maximum and a minimum interest rate. Investors may profit from rising interest rates up to the cap only, on the other hand, they are guaranteed minimum interest even if the market interest rates dip below that level. Therefore the buyer of such a paper has implicitly sold a cap and purchased a floor....

collared floater
Collared floaters are money market floaters that have both a floor and a cap on the interest rate. The floor and the cap may be considered separately. For an investor, the floor is the same as a bought interest rate option and the cap is the equivalent of a written interest rate option. The risk of changing interest rates involved in a collared flo...

collared floating rate note
A floating rate note with an embedded collar. Usually the sale of the cap(s) brings in more premium than the investor pays for the floor(s,) making this a common floating rate note variation when short rates are low and the yield curve is steeply rising....

collared floating rate note
Collared floating rate notes are floating rate medium- and long-term titles with periodic coupons linked to an interest rate representative of the money market. A floor in the interest is established, although a maximum return is also established at the time....

collateral
an asset that is delivered by the collateral provider to secure an obligation to the collateral taker. Collateral arrangements may take different legal forms; collateral may be obtained using the method of title transfer or pledge....

collateral
The security given by a borrower to a lender as a pledge for the repayment of a loan. This could include certain financial securities, such as equity or debt securities, real estate or compensating balances. A compensating balance is the minimum amount of a loan that the borrower is required to keep in an account at the bank....

collateral assignment
collateral assignment A transfer of some ownership rights in a contract from one party to another, generally for a temporary period. Insurance policies are often assigned as collateral for a loan, in which case all transferred rights revert to the assignor when the loan is repaid....

collateral assignment
Transfer of an interest in personal property for security purposes. A collateral assignment is distinguished from an absolute assignment mainly because once the debt is paid that was secured by the collateral assignment, the assignment is extinguished....

collateral pool
assets owned by members of a payment system that are collectively available to the system as collateral to enable it to obtain funds in circumstances specified in its rules....

collateral security
`collateral security` shall mean all realisable assets provided under a pledge (including money provided under a pledge), a repurchase or similar agreement, or otherwise, for the purpose of securing rights and obligations potentially arising in connection with a system, or provided to central banks of the Member States or to the future European cen...

collateral transaction
Collateral transaction means any message, instruction, request, or authorization that is intended to pledge, deposit, move, release, claim, or otherwise manage collateral used to secure public funds....

collateralize credit operations
In the USA, to pledge assets to secure a debt. If the borrower defaults on the terms and conditions of the agreement the assets will be forfeited....

collaterized debt obligation
Collaterized debt obligations (CDOs) are securitized pools of marketable fixed income instruments, primarily consisting of high yield bonds, investment grade bonds, and/or leveraged loans. CDOs have been one of the fastest growing segments of the fixed income market, reflecting a growing investor search for higher relative returns in a low interest...

collection of fixed-term deposits
A monetary policy instrument that may be used by the ESCB for fine-tuning purposes where the ESCB offers remuneration on counterparties` fixed-term deposits on accounts with the national central banksin order to absorb liquidity from the market....

collection ratio
Ratio of a company`s accounts receivable to its average daily sales. Average daily sales are obtained by dividing sales for an accounting period by the number of days in the accounting period - annual sales divided by 365, if the accounting period is a year. That result, divided into accounts receivable (an average of beginning and ending accounts ...

collective action problem
A situation in which everyone (in a given group) has a choice between two alternatives and where, if everyone involved acts RATIONALLY (in the economic sense), the outcome will be worse for everyone involved, in their own estimation, than it would be if they were all to choose the other alternative (i.e., than it would be if they were all to `irrat...

collective bargaining
Method whereby representatives of employees (unions) and employers determine the conditions of employment through direct negotiation, normally resulting in a written contract setting forth the wages, hours, and other conditions to be observed for a stipulated period (e.g., 3 years). Term also applies to union-management dealings during the term of ...

collective custody
Giro-transferable collective custody of securities. A basic form of securities custody in which the securities account holder does not receive any direct ownership of individual numbered securities, but rather receives an undivided interest in the entire holding of securities of the same class. The investor therefore does not have a right to the su...

collective dismissal
A notice of collective dismissal occurs when an employer terminates the employment of not fewer than ten employees in the same establishment in the course of two consecutive months. In addition, laying off at least 10 employees for a period of six months or more also constitutes a collective dismissal....

collectively agreed wages
Increases in the basic pay (excluding bonuses, overtime compensation) agreed between employers and employee, excluding the impact of changes in social security contributions, at the national, regional, sectoral or branch level....

collectivization
Policy adopted by the Soviet government, pursued most intensively between 1929 and 1933, to transform traditional agriculture in the Soviet Union and to reduce the economic power of the kulaks (prosperous peasants). Under collectivization the peasantry were forced to give up their individual farms and join large collective farms (kolkhozy)....

collinearity
Definition: correlation between the X-variables. Consequence: it is difficult to establish which of the X-variables are most important (they all look the same). visually the regression plane becomes very unstable....

Comecon
nonofficial term for CMEA...

COMEXT database
COMEXT is the statistical database for external trade and trade among the Member States of the European Union. The statistics on external trade only cover transactions on merchandise, which are sorted according to different nomenclatures (NC, CTCI, NACE-CLIO/D, NST/R)....

comfort letter
An accounting firm`s statement provided to a company preparing to go public. The letter indicates the accountants` comfort that unaudited financial data in the company`s prospectus consistently follow generally accepted accounting principles, and no material changes have occurred since the report was prepared....

comfort letter
The InvestorWords Investing Glossary tells us that a comfort letter is a reassuring note to a would-be investor from a company about to offer its stock for sale. The company gets the letter from an accounting firm to vouch that its public financial claims accord with accepting bookkeeping procedures....

comitology
Under the EC Treaty, the European Commission is normally responsible for implementing decisions adopted by the Council of the European Union (Article 145). The Council monitors the Commission`s executive activities through advisory, management or regulatory committees of national experts, depending on the sensitivity of the sector in question. Advi...

comma separated variable file
A file format used primarily to transfer basic data between databases and spreadsheets. Each line (up to the carriage return) is considered a record. Fields within each record are divided by a comma. Each line must have the same number of fields (commas). If a comma or leading and/or trailing blanks appear in any field value the field must be enclo...

command economy
A mode of economic organization in which the key economic functions - How, What, and For Whom - are principally made by government directive....

commerce
trade (esp. between countries); buying and selling of goods: `We must promote commerce with neighbouring countries.`...

commercial at
@. The @ symbol has been a central part of the Internet and its forerunners ever since it was chosen to be a separator in e-mail addresses by Ray Tomlinson in 1972. Whatever its source, in northern Europe the symbol seems to have soon adopted its modern s...

commercial bank
Commercial banks are allowed to engage in more varied lending activities and to offer more financial services than are the other depository institutions. Commercial banks are owned by stockholders and operated for profit....

commercial bank
the institution that accepts deposits payable on demand and originates loans...

commercial loan
A loan to a company to meet business operating expenses or to finance the purchase of inventory. [OTS] ,...

commercial mortgage-backed security
Similar to a Mortgage Backed Security but secured by loans with commercial instead of residential property. http://www.`>http://www.`>http://www....

commercial paper
Commercial paper are certificates for very short-term loans. The loan period ranges from one day to 270 days. Such notes are issued by financial and industrial corporations. Round lots for commercial paper are usually $1 million or more, though smaller units called odd lots are available....

commercial paper
Publicly issued debt securities with a maturity of less than one year are usually known as commercial paper, while debt securities issued with a maturity over one year are known as corporate bonds....

commercial paper
Unsecured, short-term (usually a maximum of nine months) bearer obligations in denominations from $100,000 to $1 million, issued principally by industrial corporations, finance companies and commercial factors at a discount from face value....

Commission Bancaire
The Commission Bancaire is responsible for the supervision of credit institutions. It has powers to take disciplinary action against any breach of the Banking Act and the regulation laid down by the Comité de la réglementation bancaire et financière. It examines the operations of credit institutions and monitors the soundness of their financial con...

commitment appropriation
The EC Budget distinguishes between appropriations for commitments and appropriations for payments. Commitment appropriations are the total cost of legal obligations which can be entered into during the current financial year for activities which will lead to payments in the current and future financial years. Payment appropriations are the amount ...

Committee on Financial Markets
The CMF is the main OECD body which deals with issues in financial markets, i.e. banking, securities, derivatives, and other financial services (except insurance). Composed of senior Treasury and central bank officials from Member countries, the Committee is part of the international network of policymakers who exercise oversight on market developm...

commodity
A commodity is defined as a physical product which is or can be traded on a secondary market, e.g., agricultural products, minerals (including oil) and precious metals....

commodity money
Money with intrinsic value; also, the use of some commodity (cattle, beads, etc.) as money. As monetary transactions become more widespread, the use of commodity money becomes increasingly awkward. Hence the gradual transition to fiat money (paper money)....

commodity risk
The price volatility risk affecting suppliers and consumers of commodities....

common share
Holders of common shares participate in management control; however, these owners of the corporation are in for the `ride` - losses or gains in the value of their holdings follow the vicissitudes of the corporate enterprise. Common shareholders have a threefold interest in the corporation: (a) to vote for directors and on other fundamental matters ...

common stock
The stock held by the equity holders of a company, who are entitled to certain claims on the assets and earnings of the company after debt service and preferred stock holders are satisfied. These stockholders also have the right to vote. Example: Common stock can be quite valuable when a company is sold and a profit is realized. The shareholders wo...

common value
A common value auction is a term in economics describing an auction in which the good being auctioned is valued the same by each participant. Note that this does not mean every participant knows the precise value of the item being auctioned, it just means that all participants necessarily place the same value on the good being auctioned. For exampl...

communal heating
Heat generated in a central boiler location and distributed to end users in more than one building through underground pipework across an area of a city, town, village or community....

commutation
This is giving up part or all of a pension in return for getting a one-off payment straightaway. It is also called a cash option....

comp time
Compensatory Leave (Comp Time): Compensatory leave is time off from work, granted because of overtime worked....

company leader
a New Age-y version of CEO...

company pension
Company pensions, unlike public PAYG systems, are backed by funds or assets. Where they pay out defined benefits, as in final salary schemes, they too are essentially paternalistic. Employees get pensions that replace their final working incomes at a rate reflecting the time they have spent in the company. The company shoulders the risk that invest...

comparative advantage
When one nation`s opportunity cost of producing an item is less than another nation`s opportunity cost of producing that item. A good or service with which a nation has the largest absolute advantage (or smallest absolute disadvantage) is the item for which they have a comparative advantage....

compensation of employees
Compensation of employees is defined as the total remuneration, in cash or in kind, payable by an employer to an employee in return for work done by the latter during the accounting period. Compensation of employees is broken down into: a) wages and salaries: wages and salaries in cash; wages and salaries in kind; b) employers` social contributions...

compensatory leave
Leave hours accrued and used by classified employees on job appointments, probational appointments, and permanent appointments for work and duties performed in excess of the normal 40-hour work week or for working on a holiday....

compensatory supplement
Austrian Compensatory Supplement (Ausgleichszulage) is paid only in Austria. It is a welfare supplement paid to pensioners who receive a small pension and have little or no other income. The rate of this welfare payment is calculated by subtracting the pensioner`s or the pensioner couple`s income from the maximum rate of Ausgleichszulage payable....

competence
1a. The state or quality of being adequately or well qualified; ability. See synonyms at ability. b. A specific range of skill, knowledge, or ability....

competence
Competence is the acquisition of knowledge skills and abilities at a level of expertise sufficient to be able to perform in an appropriate work setting (within or outside academia)....

competency
The state or quality of being adequately or well qualified to perform a task. A person gains competency through education, training, experience, or natural abilities. ... Knowles (1975) uses the following typology for competencies: Knowledge * Understanding * Skill * Attitude * Value. For example, to have an understanding of adult learning theories...

competent authorities
`competent authorities` means the national authorities designated to carry out the duties provided for in this Directive;...

complete market
A complete market is one in which the complete set of possible gambles on future states-of-the-world can be constructed with existing assets. This is a theoretical ideal against which reality can be found more or less wanting. It is a common assumption in finance or macro models, where the set of states-of-the-world is formally defined....

complete market
The economics theory definition of complete: A model`s markets are complete if agents can buy insurance contracts to protect them against any future time and state of the world. The statistics definition of complete: In a context where a distribution is known except for parameter q, a minimal sufficient statistic is complete if there is only one un...

compliance
Compliance refers to the ability to reasonably ensure conformity and adherence to organization policies, plans, procedures, laws, regulations, and contracts....

composite drawing
a large-scale drawing that comprises all geometric forms, arranged in their proper relative positions, required for a single device. Also called composite pattern, design drawing, engineering drawing, layout, and master drawing...

composite indicator
A composite indicator is formed when individual indicators are compiles into a single index, on the basis of an underlying model of the multi-dimensional concept that is being measured....

composite product
A derivatives contract that combines two or more types of derivatives contracts - i.e., an option on a swap (swaption)....

composition with creditors
An agreement, made upon a sufficient consideration, between an insolvent or embarrased debtor and his creditors, whereby he latter, for the sake of immediate or sooner payment, agree to accept a payment less than the whole amount of their claims, to be distributed pro rata, in discharge and satifaction of the whole. It constitutes an agreement not ...

compound interest
Interest computed on the sum of all past interest earned as well as on the principal. For example, suppose $100 (the principal) is deposited in an account earning 10 percent interest compounded annually. At the end of year 1, interest of $10 is earned. At the end of year 2, the interest payment is $11, $10 on the original principal and $1 on the in...

compound interest effect
When you`re saving, the bank (or financial institution)adds interest to your savings at regular intervals (for example, every month). If you don`t touch the interest, but let it add to your lump sum, then you start to earn interest on your interest, as well as on the original amount you saved. This is called compound interest. The longer you leave ...

compulsory reorganization
Similar to the Ordinary Reorganization, it is based on an agreement between the debtor and its creditors, which attempts to rescue the debtor`s business through a partial discharge of debt....