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Superglossary - Finance Category: Economy and Finance > Finance Date & country: 16/12/2013, USA Words: 5410

Concentration Account
Property that a curve is below a straight line connecting two end points. If the curve falls above t

Concentration Services
A single centralized account into which funds collected at regional locations (lockboxes) are transf

Concession
Movement of cash from different lockbox locations into a single concentration account from which dis

Concession Agreement
The per-share or per-bond compensation of a selling group for participating in a corporate underwrit

Conditional Call
An understanding between a company and the host government that specifies the rules under which the

Conditional Call Options
Applies mainly to convertible securities. Circumstances under which a company can effect an earlier

Conditional Sales Contracts
A protective guarantee that, in the event a hign yield bond is called, the issuing corporation will

Condor
Similar to equipment trust certificates, except that the lender is either the equipment manufacturer

Conduit Theory
Applies to derivative products. Option strategy consisting of both puts and calls at different strik

Confidence Indicator
A theory that because investment companies are merely conduits for capital gains, dividends, and int

Confidence Letter
A measure of investors' faith in the economy and the securities market. A low or deteriorating level

Confidence Level
Statement by an investment bank that it is highly confident that the financing for its client/acquir

Confirm Me Out
In risk analysis, the degree of assurance that a specified failure rate is not exceeded.

Confirmation
Used for listed equity securities. 'Go to the floor and check with the specialist or floor broker th

Conforming Loans
Bondholders and stockholders may have interests in a corporation that conflict. Sources of conflict

Conglomerate
Mortgage loans that meet the qualifications of Freddie Mac or Fannie Mae, which are bought from lend

Conglomerate Merger
A firm engaged in two or more unrelated businesses.

Consensus Forecast
A merger involving two or more firms that are in unrelated businesses.

Consol
The mean of all financial analysts' forecasts for a company.

Consolidated Financial Statement
A government bond with no maturity . Popular in Great Britain. The formula for valuing these bonds i

Consolidated Mortgage Bond
A financial statement that shows all the assets, liabilities, and operating accounts of a parent com

Consolidated Tape
A bond that covers several units of property, sometimes refinancing mortgages on the properties.

Consolidated Tax Return
Used for listed equity securities. Combined ticker tapes of the NYSE and the curb. Network A covers

Consolidation
A tax return combining the reports of affiliated companies, that are at least 80% owned by a parent

Consolidation Loan
The combining of two or more firms to form an entirely new entity.

Consortium
A loan that is used to combine and finance payments on other loans.

Consortium Banks
A group of companies that cooperate and share resources in order to achieve a common objective.

Constant Dollars
A merchant banking subsidiary set up by several banks that may or may not be of the same nationality

Constant Ratio Plan
Dollars of a base year used as a general measure of purchasing power.

Constant Yield Method
Maintaining a predetermined ratio between stock and fixed income investments through regular adjustm

Constant-Dollar Plan
Allocation of annual interest on a zero-coupon security for income tax use.

Constant-Growth Model
Method of purchasing securities by investing a fixed amount of money at set intervals. The investor

Construction Loan
Also called the Gordon-Shapiro model, an application of the dividend discount model that assumes (1)

Constructive Receipt
A short-term loan to finance building costs.

Consumer Credit
The date a taxpayer receives dividends or other income, for use in the determination of taxes.

Consumer Debenture
Federal legislation establishing rules for the disclosure of the terms of a loan to protect borrower

Consumer Durables
An investment note issued directly to the public by a financial institution.

Consumer Goods
Consumer products that are expected to last three years or more, such as an automobile or a home app

Consumer Interest
Goods not used in production but, bought for personal or household use such as food, clothing, and e

Consumer Price Index
Interest paid on consumer loans; e.g., interest on credit cards and retail purchases.

Contagion
The CPI, as it is called, measures the prices of consumer goods and services and is a measure of the

Contango
Excess correlation of equity or bond returns. For example, under usual conditions we might observe a

Contingency Order
A market condition in which futures prices are higher in the distant delivery months.

Contingent Claim
In the context of general equities, order to buy one security, if the trader can sell another, usual

Contingent Immunization
The formal name for the load of a back-end load fund.

Contingent Pension Liability
An arrangement in which the money manager pursues an active bond portfolio strategy until an adverse

Continuous Compounding
Under ERISA, a firm is liable to its pension plan participants for up to 39% of the net worth of the

Continuous Net Settlement (CNS)
The process of accumulating the time value of money forward in time on a continuous, or instantaneou

Continuous Random Variable
Method of securities clearing and settlement using a clearing house, which matches transactions to s

Contra Accounts
A random value that can take any fractional value within specified ranges, as contrasted with a disc

Contra Broker
Accounts, such as Accumulated Depreciation, that offset a related account, usually an asset. The con

Contract
The broker on the buy side of a sell order or the sell side of a buy order.

Contract Month
A term of reference describing a unit of trading for a financial or commodity future. Also, the actu

Contractual Plan
The month in which futures contracts may be satisfied by making or accepting a delivery.

Contramarket Stock
A plan in which fixed dollar amounts of mutual fund shares are purchased through periodic investment

Contrarian
In the context of general equities, stock that tends to go against the trend of the market as a whol

Contributed Capital
An investment style that leads one to buy assets that have performed poorly and sell assets that hav

Contribution Margin
The total amount paid to the business for its common and preferred stock.

Contribution Margin
The difference between variable revenue and variable cost.

Control
The difference between revenue and the associated variable costs. This is an important concept in br

Control Stock
50% of the outstanding votes plus one vote.

Controlled Commodities
The shares owned by the controlling shareholders of a corporation.

Controlled Disbursement
Commodities regulated by the Commodities Exchange Act of 1936 in order to prevent fraud and manipula

Controller
A foreign corporation whose voting stock is more than 50% owned by U.S. stockholders, each of whom o

Convenience Yield
The corporate manager responsible for the firm's accounting activities.

Convention Statement
The extra advantage that firms derive from holding the commodity rather than a future position.

Conventional Mortgage
An annual statement filed by a life insurance company in each state where it does business in compli

Conventional Option
A loan based on the credit of the borrower and on the collateral for the mortgage.

Conventional Pass-Throughs
An option contract arranged off the trading floor and not traded regularly.

Conventional Project
Also called private-label pass-throughs, any mortgage pass-through security not guaranteed by govern

Convergence
A project with a negative initial cash flow (cash outflow), which is expected to be followed by one

Conversion
The movement of the price of a futures contract toward the price of the underlying cash commodity. A

Conversion Factors
In the context of securities, refers to the exchange of a convertible security such as a bond into s

Conversion Feature
Rules set by the Chicago Board of Trade for determining the invoice price of each acceptable deliver

Conversion Parity Price
Specification of the right to transform a particular investment to another form of investment, such

Conversion Parity-Value
Related

Conversion Premium
Applies mainly to convertible securities. Common stock price at which a convertible bond can become

Conversion Price
The extent by which the conversion price of a convertible security exceeds the prevailing common sto

Conversion Ratio
Applies mainly to convertible securities. Dollar value at which convertible bonds, debentures, or pr

Conversion Value
Applies mainly to convertible securities. Relationship that determines how many shares of common sto

Convertibility
The value of a convertible security if it is converted immediately. Also called parity value.

Convertible 100
The ability to exchange a currency without government restrictions or controls.

Convertible Arbitrage
The interest rate on caps is adjustable and is pegged to Treasury security rates. They can be exchan

Convertible Bond
A practice, usually of buying a convertible bond and shorting a percentage of the equivalent underly

Convertible Eurobond
General debt obligation of a corporation that can be exchanged for a set number of common shares of

Convertible Preferred Stock
Convertible preferred stock that may be exchanged, at the issuer's option, into convertible bonds th

Convertible Price
Preferred stock that can be converted into common stock at the option of the holder. See also

Convertible Security
The contractually specified price per share at which a convertible security can be converted into sh

Convex
A security that can be converted into common stock at the option of the securityholder; includes con

Convexity
Curved, as in the shape of the outsid of a circle. Usually referring to the price/required yield rel

Cook The Books
Property that a curve is above a straight line connecting two end points. If the curve falls below t

Cooling-Off Period
To deliberately falsify the financial statements of a company. This is an illegal practice.

Cooperative
The period of time between the filing of a preliminary prospectus with the Securities and Exchange C

Copenhagen Stock Exchange
An organization owned by its members. Examples are agriculture cooperatives that assist farmers in s

Core Capital
The only securities exchange in Denmark. It features electronic trading of stocks, bonds, futures, a

Core Competence
The capital required of a thrift institution, which must be at least 2% of assets to meet the rules

Cornering The Market
Primary area of expertise. Narrowly defined fields or tasks at which a company or business excels. P

Corporate Acquisition
Purchasing a security or commodity in such volume as to achieve control over its price. An illegal p

Corporate Bonds
The acquisition of one firm by another firm.

Corporate Charter
Debt obligations issued by corporations.