Home     About Us    Contact Us     Contribute     Privacy
Investing
Stocks
Bonds
Mutual Funds
Biz
Credit
Career
College
Economics
Tax
More
 
 
Marketplace
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Refinance Your Mortgage if You Can Cut At Least One Point

Refinance Your Mortgage if You Can Cut At Least One Point - Refinancing a mortgage only makes good sense if you are going to save more than 1% on the...

read entire tip

Recently Added
Other Great Sites
 

Investing Glossary - C

    Cabinet Security

    Cabinet Security - Cabinet security is a security, sometimes a specific stock, but usually a specific bond that is listed on one of the major stock exchanges, but which is not actively traded....

    Cabinet Trade

    Cabinet Trade - A cabinet trade is a trading of a cabinet security. A cabinet trade can also be an off-market trade which is completed in order to end the trading of a nearly worthless stock or bond because it is out of money....

    CAC 40 Index

    CAC 40 Index - The CAC 40 index is the Cotation Assistee en Continu. This is the benchmark index for all French stock markets and it is made up of 40 of the stock market's largest and most liquid stock market's securities on the Paris Bourse Exchange. The Cotation Assistee en Continu is a French word meaning ?Continuous Assisted Quotation?. The Cotation Assistee en Continu's CAC 40 Index was introduced in 1987 and has a value of 1000. The CAC 40 Index is used by all the French stock ...

    Compound Annual Growth Rate (CAGR)

    CAGR Term category: Finance/Accounting In 10 words or less: The compounding rate of return over a period. Definition: The compound annual growth rate (CAGR) is the rate at which an investment grows annually to reach a given end value.  It's calculated by the following: CAGR = [(Ending Value/Beginning Value)^(1/# of years)] -1 Advice: CAGR is a great way to figure out the rate of return given only a couple details.  For example, if I said I invested $1000 in 1990 and had $1700 in 2005, I can use this equation to figure out that that is a 3.6% CAGR. CAGR's are commonly used in financial statement analysis....

    Calendar Effect

    Calendar Effect - A calendar affect is when the stocks in the stock markets and stock exchanges have a tendency to perform differently during different times of the year. An example of this is the January Effect, which is when the stocks tend to rise between Dec. 31st and the last day of the first week in January. This effect occurs because it is at this time of year the many investors decide it is time to sell off some of their stocks on Dec. 31st in order to claim ...

    Callable Stock

    Callable Stock - Callable stock is stock that is issued by a corporation who retains the rights to redeem, or buy back, on demand, at a specific time. Since this stock is callable stock it can be redeemed, or bought back, before reaching its maturity. Callable, usually occurs at the time the stock is issues, as it is at this time that the company must lay out all the rules on when and how the stock can be called. On demand stock, means redeemable or bought back, when the company asks for it....

    Call Market

    Call Market - A call market is a market where trades are not continuous, but rather take place only at specified times. Orders in a call market at taken at one time and buy or sell prices are then determined. These prices are set by the stock market or stock exchange, as opposed to the buying and selling activities dictating the prices. Call markets are not as popular as they once were, and today are not popular at all and only used with a situation where there is little trading volume. This is the opposite of an auction market....

    Call Price

    Call Price - A call price is a specific price which is specified at issuance to which a bond or a preferred stock can be redeemed by the issuer. Another name for this is redemption price. The redemption value is a price that an issuing company may choose to repurchase a security before it has reached its maturity date. In the case of bonds or preferred stocks, valuation is a process used for determining the fair price of the bond or preferred stock. In some cases, the fair price is the present value of the cash flow it is expected...

    Call Protected

    Call Protected - Call protected is a feature found in a callable security, which the issuing company is not able to enact the call for a certain period of time. A callable security is able to be redeemed by an investor prior to its actual maturity. This is usually applicable with convertible securities and bonds. The issuer of these bonds and securities must state all conditions the bonds or securities can be redeemed at the time that they are issued, but for most, there is a specific time where they cannot be called. Bonds are usually called when market rates...

    Cannibalization

    Definition: Cannibalization refers to the negative results a company's existing business sees as the result of a new business decision. Advice: Cannibalization is usually talked about when referring to new product launches.  If a company launches a new product that is too similar to an existing ...

    Capital Appreciation Fund

    Capital Appreciation Fund - A mutual fund attempting to increase the asset value utilizing the investments in growth stocks. The rich investment in growth stocks increases risk associated with these types of funds. It is also call an aggressive growth fund. As its name suggests, it is a capital appreciation fund seeking to liberate value to shareholders by investing in companies with appreciating share prices. This type of investment fund is the exact opposite of an income or dividend fund, which looks closely in investing in companies that pay investors a dividend....

    Capital Commitment

    Capital Commitment - Capital commitment is an inventory of stocks that market makers carry that represent a greater risk to the market maker, since the value of the stocks the market maker carries can change creating a greater risk for loss. Sometimes decisions made by companies to invest a certain amount for long-term investments, or assets, over a specific period of time, is also known to be a capital investment, which generally adds to the company's liquidity, and provides them greater protection against sudden changes in the company's profitability and shares....

    Capital Contribution

    Capital Contribution - A capital contribution is any contribution into a company that increases the equity, or liquidity, capital, capital raised from the owners, for that specific company, but does not increase, in any way, the amount of outstanding shares currently held by the specific company. A contribution in this case can be a payment to a retirement savings plan or an annuity, which is a contract, sold by an insurance company and designed to provide payments to the holder of the annuity at specific intervals, generally after retirement....

    Capital Gains

    Definition: The money gained when a stock appreciates (goes up).  For example, if you owned 10 shares of stock that you paid $15 for and it went up to $30, you would have $150 in capital gains. TeenAnalyst Advice: Capital gains are where you'll make the majority of your money if you invest in common stock.  Some people think you make most of your money from dividends.  That's wrong.It's also important to realize that you'll have to pay taxes on the capital gains you receive.  This is called a capital gains tax.  However, if you hold the stock for a while,...

    Capital Gains Distribution

    Capital Gains Distribution - This is a payment to investment company participants of profits realized on the salt of its securities. Equity funds pay out these amounts annually, typically in the month of December. This is while bond funds include capital gains in their distributions distributed monthly. Many funds allow automatic reinvestment of capital gains, rather than a distribution. The capital gains distributions lower the value of the fund. A mutual fund with long-term capital gains can designate a portion of its dividend as a capital gain distribution. The participating shareholders report this part of the dividend as if it...

    Capital Goods

    Capital Goods - capital goods are raw materials used to produce other materials such as machinery and government projects, and buildings. .Capital goods are not a finished product, or sold as a completed commodity. Instead they are unfinished materials used to create a finished product.  Capital goods are a very important economic factor because they determine if there is going to be a positive return for the manufacturing of other products.  The main difference between capital goods and consumer goods is that capital goods are sold as raw materials to other manufactures, and consumer goods are purchased and ready for...

    Capitalization

    Capitalization - Capitalization has two meanings when it comes to corporations. The first one pertains to the sum of a corporation's long-term debt, retained earnings, and debt, and is generally known as invested capital as well, because it affects the owner equity and is used in equations to calculate the company's financial stability. The second one pertains to the market price of the entire company, which is calculated by multiplying the price per share by the number of shares outstanding. This is also called the market cap or market capitalization. Either of these meanings involve the company's stability and the...

    Capitalization Ratios

    Capitalization Ratios - The capitalization ratios is the percentage of the company or corporation's total capitalization each company or corporation's capital component contributes to the company whether it be debt, preferred stock, other equity, or common stock. This is a ratio is calculated by taking the net operating income produced by combining all assets, and dividing it by its capital costs, which is the original price paid to purchase the assets also known as the current market value. Capitalization rates are an indirect way to measure how quickly an investment will pay for itself....

    Capitalization Weighted Index

    Capitalization Weighted Index - The capitalization weighted index is a stock index where each stock affects the stock market's index in proportion to its current market value. Examples of markets using the capitalization weighted index include the Nasdaq Composite Index, the S & P 500, the Wilshire 5000 Equity Index, the Hang Seng Index, and the EAFE Index. The capitalization weighted index is also referred to, and known as the market-value weighted index. This index is used by other stock markets and stock exchanges as well, and has been known to be very reliable for calculating how the stock's market...

    Capital Market

    Capital Market - A capital market is a market where equity securities or debts are traded. Equity securities are the ownership in a corporation based on any form of common stock or preferred stocks, and is generally is calculated by taking the total company's assets, minus the total company's liabilities, which in turn provides you with the company shareholder's total capital equity or the company's net worth, or the company's book value. This is extremely valuable to investors as they can tell by this how stable the company is and whether their shares or stocks are a good investment....

    Capital Market Efficiency

    Capital Market Efficiency - The capital market efficiency is an analysis of the performance and efficiency of capital markets. This provides a gauge to judge how fair current market prices are for a given asset involving the current market situations. When there is breaking news, good or bad, about a specific company, an analysis occurs on the stock's price to see how to value it, given the news. Capital market efficiency is a measure as to the accuracy of the stock's current prices. Generally, when the news is bad the price of the stock will fall, and when the news...

    Capital Stock

    Capital Stock - Capital stock is the number of shares a specific company has authorized for sale in accordance with the company's charter, and that includes both common stocks and preferred stocks. The company's charter is a document, filed by the corporation's founders with the U.S state the company's head office is located in, that describes the purpose, place of business, and other details about the corporation, including how many shares of common stock or preferred stock can be issued. The corporation's charter generally specifies all the details about stocks and other financial securities used to raise additional capital for...

    Capital Structure

    Capital Structure - The capital structure pertains to the long-term financing, on a permanent basis, of a corporation or company, including common stock, preferred stock, retained earnings, and long-term debt load. This is much different from the financial structure of a corporation or company, as the financial structure of a corporation or company includes short-term accounts payable and debts. Capital structure normally only pertains to things that are directly going to affect the owner's equity calculations on a long-term basis, such as on-going contracts, loans, building mortgages, and other financial debts or obligations of a specific company or corporation....

    Capital Turnover

    Capital Turnover - The capital turnover of a company is the company's annual sales, which are divided by the averaged stockholder's equity. This calculation, capital turnover, is used to figure out the rate of return for common equity, and is also a measure as to how well a company uses the stockholder's equity to generate additional revenue. The higher the calculated ratio is figured out to be, the more efficient the company is at using their capital. This is also known as equity turnover as well and is a great measure of how well a company is doing....

    Capital Asset Pricing Model (CAPM)

    Capital Asset Pricing Model In 10 words or less: A model that allows you to price stocks and other securities. Definition:  A model that allows investors to price securities, such as stocks, based on the risk-free rate, market returns, and the security's volatility.  The equation is characterized as: ERk = rf + Bk (ERp - rf), where: ERk is the expected return on the stock for the year rf is the risk free rate of return Bk is the beta of stock k ERp is the expected return on the market portfolio (typically the S&P500) Advice: As long as you believe ...

    Carrot Equity

    Carrot equity - The carrot equity is a colloquial term used by British citizens to descript equity securities, stocks, and shares, which enable an investor to buy additional equity shares in the company so they are able to achieve pre-determined financial goals. Unlike the call option, a current shareholder doesn't pay a premium to purchase additional shares, which can be purchased directly from the company issuing the shares are a preset price, without the purchasing of an option and warrant. Financial goals in this case is understood to mean net income, economic value added, earnings per share, and operating cash...

    Cash

    Definition: Cash can either refer to dollar bills or it can refer to when people aren't invested.  For example, if you have an investing account with $1000 in it but none of it is invested in stocks, it's called "being in cash", even though you don't have cash physically in your hands. TeenAnalyst Advice: Having all your money in cash for a long period of time isn't a good idea because inflation will eat away at your buying power.  However, it's important to have access to some cash at all times for emergencies.If you're in college, you'll want to have cash...

    Cash Cow

    Cash Cow - the term cash cow is a specific product or business that has a record of continuous asset performance and steady growth... Cash cow is a metaphor for a dairy cow that produces milk continuously with very little maintenance.  The business and economic world uses it to describe a business or product which requires very little work or investment, and has a constant positive return. A cash cow investment requires very little investment, provides steady growth, and the returns can be re invested into other divisions of the company, allowing the company to increase its net worth....

    Cash Discount

    Cash Discount - a cash discount is an offer made by a company, retailer, or manufactured offering a reduction in price if the item is paid for within a set time period.  For example a company may set a payment plan of net 30 days 3% 10 days... This means full payment is required in 30 days but if paid in 10 days, the consumer will save 3 percent.  The purpose of a cash discount is an attempt to get early payment for the purchased item. And to avoid credit card fees, which would normally be assed if the item...

    Cash Equivalents

    Cash Equivalents - This is any such investment turned into currency without losing in the conversion price because of additional fees. Any fixed-income that matures in less than one year considered a cash equivalent. This includes Treasury bills, guaranteed investment contracts and the like. Conventional wisdom states you have about ten percent of your portfolio in cash or cash equivalents for a number of reasons. The cash equivalent available to the individual portfolio quickly accommodates for many reasons. Cash equivalents can cushion an otherwise insistent stock portfolio. This investing is strictly...

    Cash Flow Matching

    Cash Flow Matching - Cash flow matching is being able to match estimated investments with liabilities to provide enough of a return to balance an investor's portfolio. This cash flow matching strategy is regularly used in pension fund management and retirement savings plans, since a steady flow of future liabilities has to be met with more than adequate cash flows to keep the pension plan or savings plan funded. This is also known as portfolio dedication or dedicating a portfolio. Investors who have an expected financial goal for retirement would find this to be useful during the younger years, although...

    Cash Flow Return on Investment

    Cash Flow Return on Investment - Cash flow return on investment, also known as CFROI is a valuation model which bases the stock price on a specific company's cash flows. The cash flow return on investment is calculated by diving cash flows by the market value of the type of capital employed. Capital employed refers to all fixed assets and all current assets less all current liabilities. Captial employed is known to mean the value of which the asset contributes to a company's ability to make revenue. Revenue in this sense can come in many forms, provided they are asset...

    Cash In

    Cash In - To cash in means to mean to redeem. The notion that one can cash in stocks, bonds, and other financial securities, can be redeemed at book or face value at a specified time or a time when deemed suitable by the issuer or company. To cash in is to use an opportunity to maximum advantage, especially financially. In the stock markets and stock exchanges, investors are always attempting to cash in when their stocks, share, bonds, and other securities are paying revenues, which means they have additional revenue in their pockets, that can then in turn be...

    Cash On Delivery

    Cash on Delivery - cash on delivery is a term meaning a service or item is paid for at the time the buyer receives it. Cash on delivery means the buyer must pay the seller, cash, or a certified bank check, for an item or service he received.  Personal checks and credit cards are not acceptable payment, for cash on delivery transaction... Cash on delivery is more widely known as a COD.  A lot of mail orders are COD, which minimizes the possibility of fraud, or a default on the buyer’s part....

    Cash Sale

    Cash Sale - A cash sale is a transaction that involves which securities are delivered on a specified trade date, instead of after the required three business days to settle a contractual obligation. The settlement date on a security is established as a date an executed security transaction must be settled, by either purchasing or delivering an asset that has been sold. The settlement date is usually set as three business days after which the trade was executed, or one day if it is a listed option or government security. These dates are obligations and expected to be met on...

    Cash Transaction

    Cash Transaction - A cash transaction is a transaction that is directly involved in the immediate exchange of cash for an asset such as shares, stocks, bonds, preferred stocks, common stocks or other financial securities. This cash transaction is the exact opposite of a futures contract, which generally involves the exchanges of some type of asset, financial securities, later, and through a set price. A futures contract requires a transferable exchange-trade contract for the delivery of a commodity at a specific price on a specific day, with no three-day grace period, and with the understanding that dollars gained or lost...

    Cats And Dogs

    Cats And Dogs - Cats and Dogs is a colloquialism used on speculative stocks and low-grade stocks, which have questionable and unstable histories when it comes to revenues, data points, and earnings. Sometimes these questionable histories are because a company that is relatively new doesn't yet have an established and on-going track record or well-established financial history, but on other occasions it is due to some questionable and unaccountable accounting record keeping. Data points are information about a company or stock in its raw or unorganized form that refer to...

    C Corporation

    C Corporation -  a C corporation is a company legally viewed as a separate entity from its owners..  A company becomes a C cooperation as soon as it files as a corporation .  By becoming a C corporation, investors and owners are safe from lawsuits , except  for their interest in the company.  There personal assets are not on the line, just  their extent of ownership of the company.  The downside of a C corporations is because it’s listed a separate entity, the owner is subject to double taxation, One personally, and one for the C corp....

    Certificate of Deposit (CD)

    Definition: This is much like a bond from a bank because you give a bank money for a specified amount of time and they agree to pay you back at that time, plus interest.  The length of a CD usually varies from one month to five years. TeenAnalyst Advice: If you have a lot of money in the bank, CD's allow you to put that money to work for you.  They're also nearly risk-free investments.  However, their interest rates vary with the current market interest rates.  At times, you may receive a very very low interest rate.We recommend that if you'...

    Certificate for Automobile Receivables

    Certificate for Automobile Receivables - A certificate for automobile receivables, which is also known as CARS are asset backed stock, bonds, and other financial securities or pass through securities that are under the collateralization of car loans from banks and other lenders. These certificates are part of the lending and credit currencies and are considered to be a short-term security backed in turn by automobile loans that originated with lenders and reseller in the automotive industries. These provide relatively safe securities that pay out on the short-term and are a good way to balance your portfolio. These are great for...

    Certificate of Stock

    Certificate of Stock - A certificate of stock is a document used to reflect the legal ownership of a specific number of a corporation's stock shares that are also called stock certificates. A stock certificate or certificate of stock represents one unit of ownership in a firm, company, or corporation, limited partnership, or mutual fund. Shareholders in these forms of business ownership are always the last to receive money back on their investment in company shares if the company falters or has to liquidate quickly. In a bankruptcy situation, most shareholders only receive a percentage, if they...

    Chartered Financial Analyst (CFA)

    Definition: The Chartered Financial Analyst (CFA) program seeks to measure the competency of financial analysts.  Its three tests contain many questions about portfolio management, economics, ethics, etc. Advice: The CFA is a prestigious professional certificate that many analysts seek out.  Because the program requires the analyst to have three years professional work experience and complete three very difficult exams, analysts who have completed the program are seen has very competent.  ...

    Chairman of the Board

    Chairman of the Board - the chairman of the board is the highest official or officer of a board of directorship. The Chairman of the board is the top official in corporate meetings, and is sometimes given executive authority over the entire company, depending on the structure of the corporation.  In some cases the Chairman of the board is the chief board member, but has no role in day to day operations, Managers and Presidents are elected or hired.  In other corporations, the Chairman of the board is the acting highest official and is duly in charge of the entire...

    Charter Capital

    Charter Capital - Charter capital is two company or corporation's assets brought together to form a new company. For instance, a stock company with joint ownership takes its charter capital and divides it into particular number of shares in which it exchanges for contributions, where the shareholders are free to transfer their ownership interests by selling their stockholdings to other investors, at any time they feel it is convenient to do so. There are two types of joint ownership, private and open market. The shares are generally held by...

    Chicago Stock Exchange

    Chicago Stock Exchange - The Chicago Stock Exchange is also known as the CHX, and is a stock exchange that operates regionally. The Chicago Stock Exchange was founded in 1882 but merged with the another stock exchange, the Midwest Stock Exchange, in 1949 and it was renamed to the Chicago Stock Exchange in 1993. The Chicago Stock Exchange operates as an electronically automated exchange where securities listed and trading shares are on the NYSE, AMEX, and Nasdaq exchanges. The CHX is in the top three for active stock exchanges in...

    Chief Executive Officer

    Chief Executive Officer - a chief executive officer is the highest ranking official of a corporation.  The Chief executive officer, commonly known as the CEO, typically is the president of the company, and reports the Board of directors. The CEO usually presides and oversees all daily business operations, sets strategies for company success, and is the spokesperson between the company and the board of directors.  In some cases the Chief Executive Officer has a spot on the board, or even is elected Chairman of the Board, depending on the striation of the company....

    Chief Financial Officer

    Chief Financial Officer - the chief financial officer is a high ranking official of a corporation usually reporting only to the board of directors, or the Chief executive officer...  Under most cases the Chief financial officer, (CFO) has a background in accounting and finance, and there primary responsibility is the financial area of the company. such as debt refinancing. A CFO in most cases is the second highest position of a company and is given other roles, on top of their regular duties. However their primary duty is financial planning, and cost saving....

    Chief Operating Officer

    Chief Operating Officer - the chief operating officer (COO) is an executive corporate officer of a company or corporation that oversees day to day operations. The COO is usually named because the CEO is too busy to handle the day to day operations. The COO reports directly to the CEO. Main duties are to oversee the operations of the company, develop more efficient and cost cutting ways to improve the performance of the company....

    Choice Market

    Choice Market - A choice market is a market used for specific stocks in which the bid price is equal to the ask price, so in other words, the bid ask spread is zero. The choice market is a sign that the market is very competitive and has a very high liquidity, which is relatively uncommon in the stock markets. In this situation, the specific stock can be purchased at the same price it is sold at in the stock market. This is extremely rare occurrence in the stock markets...

    Christian Bank

    What is Christian Bank? Today, you will find many financial institutions catering to people from special interest groups. The majority of these financial institutions exist in the form of banks, credit unions, and co-operatives. They are located throughout the world and have special programs and arrangements to suit the interest groups needs. Some even have specific interest rates for various special interest groups, or cater only to that type of special interest group. The majority of these banks, credit unions, and co-operatives have financial planners that can assist you with wealth management, online investing, private banking, estate and trust services, investment management,...

    Christian Credit

    What is Christian Credit? Whether you are rich or poor is a matter of acting upon financial information with knowledge and understanding. The majority of people today have taken on far too much credit and over extended themselves, creating monthly payments that exceed their monthly income, forcing them to juggle payments and creditors. Consumer credit is a feature that seems extremely easy to come by, but extremely hard to pay off. This credit comes in the form of mortgages, loans, credit cards, department store cards, gasoline cards, and programs that let you purchase of easy payment, no interest for a certain period...

    Christian Finance

    What is Christian Finance? In today's economic times, personal finances equal personal responsibility. Unfortunately, many of us today have large debt loads and the only way to lower them is to tighten our belts and pay off what we owe. This ultimately puts money back in our pockets and allows for greater spending or donating. Like other people, some groups obtain, as much if not more joy in giving than collecting, so if you fit this group, now is the time to get your finances under control. One way to do this is to take responsibility and don't blame others for the...

    Christian Financial

    What is Christian Financial? Through a network of brokers, there are many financial services at your disposal. Some of these services include, but are not limited to, Investment Planning, Retirement Planning, Estate Planning, Business Planning, Farm Planning, and Tax Planning. No matter which type of planning services you require, the financial planner or investment counsellor will be able to provide you information on the following investment options. Mutual funds; life insurance options; segregation funds; disability funds; group insurance; travel insurance; health insurance; Guaranteed Investment Certificates (GICs); Registered Retirement Savings Plans; Registered Retirement Investment Programs; Registered Retirement Education Programs; and/or Registered Retirement Self-Directed...

    Christian Funding

    What is Christian Funding? Are you looking for a grant, loan, or program that will provide additional funding to your coffers? If the answer to that is yes, this article is for you. There are many ways to obtain additional funding to meet your needs whether they are to deepen and enrich your religious live, to support, recruit, or educate others, to encourage reflection or study, to support scholar and educators, to restructure or renovate. Some of the sources where you may find assistance include the government, not-for-profit organizations, service clubs, special interest groups, program grants, loans, and membership. Depending on the reason,...

    Christian Insurance

    What is Christian Insurance? Today most people understand that it is necessary to carry home insurance, rental insurance, and auto insurance to protect their property in case of accident, theft, loss, or other damages. So, I would like to focus on life insurance and how each type of plan protects you and your loved ones. There are three main types of life insurance... term, whole, and universal. Term Life is for a set period of time and if the insured person dies the beneficiary named on the policy receives a lump sum of tax-free money. This type of insurance is ideal for young...

    Christian Investment

    What is Christian Investment? Everyone has there own reason for investing his or her spare money. Some of it may be used to gain additional comfort or convenience for our loved ones, some may be used to offset retirement expenses, and some may be used to provide for the needs of others. Through solid financial planning, you will be able to find ways to invest additional money into future plans and goals. When investing in the stock market, mutual funds, and other investments it is wise to invest in companies that you feel are ethical and aim to do good work...

    Christian Lending

    What is Christian Lending? These companies use Christian principles in every facet of their business. They pride themselves on being honest and sympathetic to the needs of their clients. Many times they help people with bad credit or low credit scores to receive funding for various needs. If an individual could benefit from consolidating their debt or simply need to make purchases for necessities but feel their negative financial rating will prevent them from being approved for a loan elsewhere, it may be wise to apply for a Christian loan. Christian lenders are usually best for church communities seeking loans to start...

    Christian Loan

    What is Christian Loan? Money management is a skill that is learned over time and generally with the help of a good bank or credit union loans officer, or a financial planner. Money management and debt reduction should be the goal of every person, but there are times when personal loans are required. Sometimes it is to put a child through college, while other times it is to purchase necessary vehicles or products for the home. Being a good steward of money will help you prosper and lead a successful rich life. Personal loans are available in fixed or variable rates. If...

    Christian Market

    What is Christian Market? Searching for a market online or offline is not difficult. Finding a market is based on specific demographics. In some cases, depending on the market being sought, it could be by who owns the most homes in an area, by who purchases more cars in that same area, or by who uses the internet the most. In order to find a specific market, you will need to: Find and analysis your targeted market. Create some goals so that you can target individual segments of that market. Research the market potential. Evaluate the strategy and performance of your market. Provide attributes that provide the...

    Christian Mortgage

    What is Christian Mortgage? So, you have decided to purchase a home. This means that unless you have enough cash to purchase the property outright, you will likely need a mortgage. Like all loans, a mortgage is just a specialized form of loan that allows for a long amortization, number of years you may take to pay the money back. In today's financial institutions, and with the increase cost of building and buying, the amortization period can range anywhere from five years to thirty-five years, and can have many terms and repayment options. The next question you have to answer once you...

    Churn Rate

    Churn Rate – the churn rate is the percentage of subscribers to a certain service that cancel their service in a given time period.  The churn rate is important to certain industries because of strict competition.  The higher the charm rate, the more available potential customers are available.  An example of a churn rate is as follows.  A cable television company has 2 for every 20 subscribers discontinue their service after a year.  The churn rate would be 10 percent ((20 divided by 2)   The churn rate gives insight to the company, regarding increases or decreases in subscribers and...

    Claim Dilution

    Claim Dilution - a claim dilution is a decrease in the likelihood that one or more parties in a contract will be repaid in full.  A dilution is a change on earnings per share of a stock, and a claim dilution may occur if the following happens. A company adds additional claims, to a pool of assets (such as mortgages), without adding more assets... The result of adding more claims, to the pool of assets, and not adding more assets, will result in a claim dilution, decreasing the likeliness that one or more contact holders will get paid in full....

    Class A Shares

    Class A Shares - Class A Shares are normally the peferred level of classified stock, which offer more voting rights than Class B Shares do. These shares were designed to insulate corporate management from the short-term swings that occur on Wall Street, and to allow management to manage small amounts of the equity in their company, and still maintain voting power. This type of share is not sold to the public and it cannot be traded. This supports management by allowing them to focus their attention on the company's...

    Class B Shares

    Class B Shares - Class B Shares are the second tier of stock that is classified by a company or corporation. These shares usually have less voting rights than the Class A Shares, which are the preferred share by most investors, although the company or corporation has the right to designate which classification of shares has the most voting rights and when they are issued to the shareholders. Sometimes companies assign Class B shares with more voting rights than Class A shares, which can be confusing, but enables management of...

    Classified Stock

    Classified Stock - A classified stock involves the division of a company or corporation's common stock into various classifications. These classifications include Class A shares and Class B shares. As a rule Class A shares carry more voting rights than Class B shares but the management of the company has the discretion to change that and make Class B shares with greater voting rights than the more preferred Class A shares, which in turn, would have less voting rights. The company or corporate management team may deem to do...

    Clean Up

    Clean Up - A clean up is the sale of all remaining stock which leaves the investor, company or corporation with no shares remaining on their books. This is also a stock trading tactic used by large stock traders; usually an institutional investor, to buy or sell so much stock that it causes the market to move to a different level, and adds pressure on all other trades in play that could last for several days. When the clean up is over, the stock market usually recovers its balance, although ...

    Clear A Position

    Clear A Position - Clear a position means to pay out, or close out on a short or long position, which in turn eliminates any and all obligations. Generally, if a broker recommends you close your long position on any stock, he or she means ?sell it? immediately as they stock's position, the broker believes, is destine to change. For example: If you have a short position on stock, in order to close the position on that particular stock, you would need to take a long position and buy back the stock. So, clear a position...

    Clearing Price

    Clearing Price - Clearing price a price assigned to an asset, which could be cash, stock, bonds, and other securities, after a buyer has completed the bid and ask process. The clearing price notates the highest price that could be negotiated and that the buyer is willing to pay, and the lowest price that the seller of the asset is willing to take. This means buying a specific commodity at an agreed upon price that was negotiated between the buyer and the seller. The exchange of these assets usually takes place at the seller's discretion, unless arranged otherwise with the...

    Clientele Effect

    Clientele Effect - Clientele effect is the tendency for security investors with a similar strategy to invest in securities and specific companies that meet their specific set of requirements, or criteria, especially when it comes to financing terms. An example of this would be investors who are looking to find companies who carry a low volume of debt will flock towards companies who do not use much in the way of leverage. If the company's position changes, at any time, involving financing or debt, most of these low debt investors are more likely to sell their securities and look for...

    Clone Fund

    Clone Fund - The clone fund is an investment strategy involving the duplication of the structure and performance of a similar index or fund. This replication activity accomplished with the application of derivatives to the clone fund. Once considered a very popular method to piggybacking on the success of a better, established mutual fund, the strategy has become less common in recent years. Many shareholders see some degree of associated benefit with a clone fund. Often, clone funds secured at a reduced price serve the shareholder investments in clone funds at a lower risk. Investing in clone funds carries a...

    Close Corporation Plan

    Close Corporation Plan - A close corporation plan is a particular arrangement where surviving shareholder in a business, company, or corporation, agree to purchase a deceased shareholder's shares. This is an excellent business strategy as it ensures all the present owners in the corporation that no outside interests cannot attempt to purchase the deceased members shares in their private owned corporation. This keeps the control of the corporation in the current shareholder's hands. By doing this, the corporation also retains a certain degree of stability while the adjustments are made to accommodate the death of one of the key shareholders....

    Closed-End Investment Company

    Closed-end Investment Company - Closed-end investment companies are businesses devoted to the supervision of investments that involve a limited issue of shares for sale and distribution. The management investment company will deal in seasoned securities as well. Generally, the closed-end investment company does not convert any outstanding shares. The closed-end investment company will utilize a secondary substitute or an over the counter market. Investors conduct business with a closed-end investment company because it is possible to come across a great offer. The shares sold for a reduced price than the book value and the shareholder has reason to believe shares...

    Closed Corporation

    Closed Corporation - A closed corporation is a private corporation that is entitled to operate without the strict formalities required when operating a standard corporation. This is usually a small business or company in which all the voting stock is held by only a few selected shareholders, and operates more like a partnership, than a true corporation operates. Generally, the shareholders consist of friends and family members. These closed corporations are referred to, as private companies. Usually these companies are still publicly traded, although the shares are not available for sale to the public, so these corporations are known to...

    Closed-End Fund

    Definition: A closed-end fund is one that issues a fixed number of shares.  These shares are traded on stock exchanges in a similar fashion to stocks. Advice: If you're planning on investing in closed-end funds, you should understand that--unlike open-end funds--their price is derived from supply and demand rather than the assets underlying the portfolio.  Because of this, the closed-end fund market is often seen as inefficient from a pricing standpoint.  ...

    Closed Funds

    Closed Funds - Closed funds are in fact, mutual funds currently not issuing shares to new customers. The shut down on shares issued may be a temporary measure, or may be permanent. When the mutual fund has grown too large, a closed fund takes place. The mutual fund is a closed fund when the status does not impact the outstanding shares that are currently in circulation. These shares presented for redemption by the shareholder in accordance with the terms and conditions that apply. New investors or shareholders are not able to acquire any shares associated with a closed fund until...

    Closed Joint Stock Company

    Closed Joint Stock Company - A closed joint stock company is company or corporation where there is a limited number of shareholders that can have stock in the company or corporation. In these companies and corporations, investors receive stocks or shares in the company or corporation, but they can be transferred and also can elect a board of directors, but since these are joint, they are held accountable for all the company or corporation's debts and obligations. In the United States, joint stock companies and corporations cannot hold real property titles. In the United Kingdom, the liability of the owners...

    Closely Held

    Closely Held - Closely held is a company or corporation, in which only a small number of their shareholders holds the majority of the voting stock. These companies and corporations are still traded publicly, even though their shares are normally not available to the public. Because there are very few shareholders in the company or corporation there are also very few shares available; therefore, they are very thinly, hardly, traded at all and usually considered to be inactive shares. By keeping their company closely held it prevents situations where the owners do not have control of how the company or...

    Closet Indexing

    Closet Indexing - Closet indexing is an investment strategy, which enables an investment manager or investor to achieve a performance outcome reminiscent of the market index or average, without having to actually purchase the exact same securities that make up the market index or average. To do this, the investment manager or investor must mimic an index, taking into account each given sector or industry, and the weights of the stock contained within each section. This indexing is much more difficult than just passively investing into an indexed fund. It is also subject to the almost the same amount of...

    Closing Quote

    Closing Quote - A closing quote is the final bid-ask prices that are recorded by a specialist or market maker in his book at the end of the trading day. The final bid-ask quote is the amount an issuer has agreed to take on the stock he is willing to sell, and the final price an investor is willing to pay for the stock that the issuer is offering. A specialist is the stock exchange member who records all the transactions for certain exchange trading of securities to maintain the stock inventory records. He or she is in charge of...

    Closing Sale

    Closing Sale - A closing sale is a transaction that takes place, in which the seller has full intention to reduce or eliminate the long position that the seller has held regarding a certain company or corporation's stock, or a company or corporate option series, which are stocks that carry the same class, maturity, or strike price. The strike price is a specific price on an option contract where a call option buyer can buy the security subject to the details outlined in the contract. The buyers profit on the option contract is the amount of the spot price, the...

    Closing Tick

    Closing Tick - The closing tick is the number of company or corporate stocks at the end of the trading session that were on the uptick less the number of company or corporate stocks which ended the trading session on the downtick. The uptick is a stock market quote or transaction at a higher value than the preceding one on the same security. The downtick is a stock market quote or transaction at a lower value than the preceding one on the same security. These ticks are also known as a plus tick and a minus tick....

    CMO REIT

    CMO REIT - A specialized type of Real Estate Investment Trust or REIT investing in the residual cash flow of the Collateralized Mortgage Obligations or CMOs. The cash flow representative of the CMO REIT is the difference between the holders and the paid rates stated. The investment holders of the underlying mortgage loans and the lower shorter-term rates paid directly to the known investors. The spreads are subject to the risk factor associated with the interest rate level and are unsound investments. The income is steady, but with very little growth movement. Other investments may specialize in the various property...

    CNBC

    Definition: CNBC is the news channel that covers the financial markets. Advice: CNBC was criticized for its coverage of the dot com bubble during the late 90's because it took more of a cheerleader role than as an objective news source.Now, the network is required to report whether analysts it has on its shows do banking business with the stocks they're talking about.    ...

    Collective Bargaining

    Collective Bargaining - collective bargaining is negotiating between unionized employees of a company and management. . The process of collective bargaining involves management and union officials, coming to an official agreement on items such as: wages, vacation pay, sick days, and working conditions. Various methods are used during the collective bargaining time, but the outcome is always a mutual agreement  between management, and the union officials.  A contract is then drawn up and agreed upon for a period of time, and then the process repeats itself.  The collecting bargaining begins when a group of works vote to have a specific...

    Collective Investment Scheme

    Collective Investment Scheme - A collective investment scheme is a method of investing currency to participate in a wider range of investments that for most individual investors works, and to share the costs and benefits of doing so. The language varies with each country but collective investment schemes referred to as mutual funds, investment funds, managed funds, or simply funds. Large markets have expanded around collective investment and these account for a portion of all trading on major stock exchanges. Collective investments are an expanding range of investment targeting specific geographic regions. Depending on global market there is a prejudice...

    Collective Trust

    Collective Trust - A collective trust is an investment fund established by institutional shareholders. The creation of the collective trust is for the purpose of investment deals involving a large amount of resources. The brainstorm behind a collective trust is combining the purchasing power of the member institutions so that investors may engage in financial transactions that would not be feasible individually. There are a various institutional shareholders who choose to engage an approach to investing. The larger returns for institutions benefit the client. The collective trust is a partnership of selected investors to create a temporary investment fun for...

    Colombo Stock Exchange

    Colombo Stock Exchange - The Colombo Stock Exchange is also known as the CSE. This is the primary stock exchange in Sri Lanka and it officially opened its doors for trading in 1985. This exchange is the most modern stock exchange in all of South Asia and it has a fully automated trading platform. This stock exchange's objective is to add to the wealth of the country by creating value through securities. The Colombo Stock Exchange's headquarters located in the World Trade Center Towers in 1995 and it has branched out across the country every since. The Colombo Stock Exchange...

    Come In

    Come In - A come in involves the decrease in the price of a company or corporation's security....

    Commingled Fund

    Commingled Fund - A Commingled fun is a mutual fund or a common trust fun consisting of various kinds of assets from several accounts united together. The commingled funds asset, mitigate the risk for the investor or shareholder through diversification and reduces the cost of organizing each account separately. The funds were once a breach of trust as dishonest trustees mixed their own funds with the funds of the client. This became complicated to verify. The Federal Reserve Board has permitted bank trust departments to offer commingled accounts to shareholders retirement accounts. To determine the holder of the invested funds...

    Commission

    Definition: This is the fee you pay to a broker when you buy or sell a stock.  You can often avoid paying high commissions by using online brokers. TeenAnalyst Advice: We recommend that if you're just investing a small amount of money to find an online broker.  Otherwise, the bulk of your money will be spent on paying your broker's commissions.Also, some brokers are motivated by commissions.  This means that they have an extra incentive to get you to frequently buy and sell shares of stock so that they receive higher commissions.  This is in their interest, not yours!   ...

    Commission Broker

    Commission Broker - A commission broker is independent broker, who received payment in the way of commission by taking a percentage of the value of a transaction that takes place on an asset. A commission broker is either individual or a firm's representative who acts as a go-between for the buyer and the sell and generally charges a commission for the transactions enacted. These representatives are required to have a license. This percentage can range in price depending on the individual broker involved in the transaction; therefore, it is usually good to know your broker, so you know what fees...

    Committee on Uniform Securities Identification Procedures

    Committee on Uniform Securities Identification Procedures - The Committee on Uniform Securities Identification Procedures is also known as CUSIP. The acronym refers to not only the name, but also to the alphanumeric nine character security identifiers, they distribute throughout North America for securities. These securities are for settlement and clearing of trades. The CUSIP system is owned by the American Bankers Association and is operated by Standard and Poors. This coding system serves as a securities identification number for products issued in Canada and the United States. CUSIP is a national numbering service for North America and it issues all...

    Commodities

    Definition: A good traded in bulk on a financial exchange.Advice: Differentiation in a commodity business is virtually nil.  Examples of commodities include oil, natural gas, cocoa, coffee, and gold.        ...

    Common-Law Voting

    Common-law Voting - Common-law Voting is an obsolete and rarely used voting system that allows each shareholder a single vote, regardless of how many shares they hold. This system is being phased out as shareholders who hold more share or ownership and responsibility for debts believe, rightly so, that they should have a greater say as to what happens with the company and how it is managed. Therefore, today few companies use this system, except for companies where their bylaws specify that they must. Most analysts feel that the process doesn't really present any difficult problems, but most shareholder feel...

    Common Equity

    Common Equity - Common equity are a measure of how much equity is held by common stockholders of a company or corporation. This measurement disregards the preferred stockholders and is the equivalent of shareholders equity less preferred equity. A shareholder's equity is the total of all assets less the total of all liabilities of the company, divided by the number of shareholder's shares. In the case of a company, this is also known as Owner's Equity, Net Assets, or Net Worth. Preferred equity is a measure that only takes into account the preferred shareholders; therefore, it would be shareholders equity...

    Common Stock

    Definition: The most common form of stock.  It's a form of stock that represents ownership in a company and also gives the owner voting rights. TeenAnalyst Advice: As a small investor, the type of stock that you'll most likely buy will be common stock.  The other type of stock is called "preferred stock" but it is...

    Common Stock Equivalent

    Common Stock Equivalent - The common stock equivalent is a company or corporation's preferred stock or bond that is convertible, or can be exchanged into, common stock. This is especially important if the stock is trading like an equity issue, as usually the optioned company or corporation's common stock or share price is much higher than the preferred stock or bond price. At this time, the ownership interest in the corporation or company's common stock is much more preferred by the company or corporations stockholders, as they welcome the higher return and usually will exchange their preferred stock in favor...

    Common Stock Ratio

    Common Stock ratio - The common stock ratio is when you take a company or corporation's common stock and divide it by the company or corporation's total capitalization, and then express it as a percentage. To arrive at the capitalization of a company you take the market price of the whole company, which is calculated by multiplying the outstanding number of shares the company holds, by the price of each share. This is also referred to as the market cap or market capitalization. Capitalization takes into account the company or corporation's long-term debts, retained earnings, and stock....

    Compensation Package

    Compensation Package – a compensation package is the total worth of assets and benefits an employee receives. A compensation package is the entire amount an employee will receive from the employer, but is broken down into groups.  The salary the employee will receive is the most major part of a compensation package...  vacation pay and the number of total paid sick days awarded to the employee.  The entire amount of a pension is also figured in the compensation package. Insurance coverage the employee receives and the value of the policy. An exit compensation package is a package an employee gets...

    Competitive Intelligence

    Competitive Intelligence -   competitive intelligence is information and data collected on competing businesses.  Competitive intelligence is used to learn more about the company’s competitors, and how it will affect them in any given market...  Competitive intelligence is a legal and viable way to find out, and analyze the competition...  Competitive intelligence mainly focuses on the external parts of a business, its focus, how it operates, and its effect on local market.  . Competitive (CI) is mainly focused on looking at the risks and opportunities for a company before they actually break ground in a local market...

    Complex Capital Structure

    Complex Capital Structure - Complex Capital Structure consists of the separating of a company or corporation's common stock into a variety of classes. These classes consist of Class A stocks, which have voting rights and Class B stocks, which generally do not have voting rights, although this is not always true in all companies or corporations. Private corporations often wish to retain ownership and management rights in the company; therefore, they make their Class B stock with voting rights, and not their class A, which are traded on the public stock market. This is also known as multiple capital structure...

    Compounding

    Definition: This is the concept that you earn interest on the interest you have already earned.  At first, your money grows slowly, but as time passes, your money grows more rapidly.  This is often considered the "eighth wonder of the world." TeenAnalyst Advice: We're serious when we say that compounding can make you rich.  ...

    Concentrated Portfolio

    Concentrated Portfolio - A concentrated portfolio is a portfolio that has a small variation of different securities in order to create a level of diversification that creates a well-rounded investment portfolio. This type of diversification is unlike the higher types of diversification as they generally carry a much greater number of securities in order to reduce the impact of the amount of risk. Most of the concentrated portfolios have, as a rule, less than ten stocks in them. By keeping a small complex capital structure, the risk to the investor remains at a minimum when the securities do the ditsy-doodle....

    Concentration

    Definition: A concentration strategy involves picking a small batch of stocks, investing in them, and following them closely. Advice: The opposite of concentration is diversification, which involves buying a large batch of stocks.  Because diversification removes some of the...

    Concession Agreement

    Concession Agreement – a concession agreement is right given to cooperation by a foreign country, to operate a business or invest, in their country. ..Concessions are incentives for the corporation to operate and do business in the foreign country, and a reason not to leave in the future.  Countries may use concessions to maintain foreign business, for tax reason and also for economic, and employment reasons... Generally a contract between a foreign country and the corporation is drawn up and agreed on before the company invests and operates in the foreign country....

    Conditional Call

    Conditional Call - A conditional call is an arrangement in a security, which is convertible security that indicates all the circumstance that the company, or corporation, issuing the security can call in securities or buy back securities earlier than was originally stated in the buy-sell agreement or option. These types of conditional calls are normally related to the price involved in the security, and allow the company, if the trading price of the stock gets to be beyond a set range, to call in the security earlier than the agreed upon date when issuing them. Companies do this in times...

    Conduit Theory

    Conduit Theory - A conduit theory is the thought that companies or corporations with qualifying investments and REITs should be able to side-step, or avoid, double taxation by skirting capital gains taxes, interest expenses, and dividend income directly to the company or corporation's shareholders, without incurring the tax liability itself, as a separate entity. REITs are an investment trust for real estate, when the invested capital of many investors is used to purchase income property or to manage it. REITs are traded on the majority of major stock exchanges, and are treated just like stock, but receiving special tax status...

    Conference Call

    Conference Call - A conference call is a call a two, three, or multi person phone call most often between individual investors, institutional investors, and/or analysts for the purpose of discussing the released quarterly reports, financial, that indicate how well the company is doing. This call could also have information about the outlook on the company's future, management, or operations, as well as recent financial decisions made by the shareholders. Sometimes analysts are able to ask questions at the end of the call, which could affect recommendations on the company's stock. This usually happens if the company reports are good...

    Confidence Level

    Confidence Level - the confidence level is a measure on the likelihood a company will reach its goals... It’s generally an equation or degree of certainty that a company is capable of living up to its business plan, or promises.  Some companies use a simple and effective way of judging the confidence level, by using a scale.  The company analysis’s how many times they achieved the goal out of 100 events.  If they achieved it 80 times, that would give them an 80 percent confidence level.  An insurance company might use a dollar amount for claims, and figure the percentage...

    Consensus Forecast

    Consensus Forecast - A consensus forecast is a forecast that is prepared and given for a company about their financial situation and expected growth, or lack there of. This report provides the entire sum of the company, so that analysts who follow the company can compile required information on how well the company is doing. By compiling this information, analysts can estimate any future trends. These exact same analysts can also give recommendations about the company's future. They are also able to provide investors with information about whether they should buy or sell stock in this company. The information gained...

    Consensus Recommendation

    Consensus Recommendation - A consensus recommendation is measure associated with a phenomenon, or objective quality of a stock, which is measured and verifiable for thickness or thinness. This measure is then averaged and the final results are a recommendation by an analyst about a specific stock on the stock market or stock exchange. For every analyst's recommendation, whether it be buy, sell, hold, etc., that a specific stock on the stock market or exchange is given, the stock is translated into a number, which is then averaged. These analysts's recommendations are very helpful when investors are unsure which stocks to...

    Conservative Growth

    Conservative Growth - The conservative growth is an investing plan, or investment strategy, which is aimed at long-term appreciation involving the capital account of a specific company or corporation. The plan is to secure the least risk, and it generally consists of a very high percentage of those wonderful and generally stable blue chip stocks, which are infrequently traded on the stock market or stock exchange and that have a very low turnover rate. This type of investment is assumed to be almost risk free as these stocks rarely waiver much; therefore, they are considered a sound investment, as well...

    Constant Maturity

    Constant Maturity - The constant maturity takes place when there is a quoted return, or yield, on a financial instrument, that is fixed and it involves comparing the instrument in question with other financial instruments that are also fixed, but that have different maturities, which is the given date the debt become due for payment. By doing this comparison the investor can look at various securities and compare their numbers to each other, as long as they all have the same maturity date attached to them. These are often used when mortgage rate calculations are required, as it is a...

    Constant Proportion Portfolio Insurance

    Constant Proportion Portfolio Insurance - Constant Proportion Portfolio Insurance is also known as CPPI and is a type of derivative security, which offers exposure to an investment, while retaining less risk and guaranteeing capital investment. The constant proportional portfolio insurance occurs through the purchase of a bond, which has a zero-coupon where, the proceeds in cash that is to be leveraged. The bond floor is set so that constant proportion portfolio insurance so that cash flows are paid out, which in turn, guarantees the capital invested. Consumer Stock - Consumer stock is the stock or a company or corporation who...

    Consumer Goods

    Consumer Goods – consumer goods are items bought by people for personal use. Consumer goods are items such as clothing, food, household items, that satisfy the needs and wants of the general public. Consumer goods are different then capital goods.  Capital goods are raw materials used and sold to make other goods.  Consumer goods, also called consumer products, could be a home computer.  The plastic or metal housing or the internal components of the computer that were sold to the manufacturer would be a capital good. A consumer good is a finished product available for public use....

    Consumption

    Consumption - the term consumption in the economic industry means the use of goods by a consumer... Consumption can be a product or a service, and the consumer would use the item until it has no remaining value...  Consumption can be in the public and private sector, but it does not include capital goods, for the means of production, such as raw materials or machinery... Consumption is the act of an item or service by a consumer. A consumer purchases a product or service, use it, consume it, or convert it to his/her use,  ...

    Contagion Effect

    Contagion Effect – a contagion effect is an adverse condition caused by a company that may affect other companies or an entire industry. An example of a contagion effect would be the improper testing of a prod duct resulting in a recall or further testing.   Contagion effects (on a broader scale) can also be a market issue. An adverse issue may spread from one country to another affecting the entire global market...  The term contagion comes from the word contagious, which means a highly transmittable disease that is capable of spreading fast, and covering a large area...

    Contingent Deferred Sales Charge

    Contingent Deferred Sales Charge - The contingent deferred sales charge is an initial sales fee on mutual fund shareholders pay upon sale of Class-B mutual fund shares. This is for mutual funds with share classes decided when shareholders pay the fund's load or sales charge, Class-B shares carry a deferred sales charge during a five- to 10-year holding period intended from the time of the initial investment. The charge is equal to a percentage of the value of the shares sold. It is supreme in the first year of the period and diminishes yearly until the period ends, at which...

    Contingent Immunization

    Contingent Immunization - This is a method of fixed income portfolio managing, whereby institutional executives granted noteworthy powers of control over the choice of products. These are yields to added and deleted from the investor?s portfolio, as long as the products remain profitable. Should these goods become unbeneficial past a positioned threshold, the manager must then capitalize the security under immunization procedures. Similar to the portfolio, methodology of insurance documented in equity markets, the contingent immunization provides executives with the innate ability to exchange underperforming fixed income assets with better performing ones while restricting their powers in cases where declines...

    Continuous Inventory

    Continuous Inventory – the term continuous inventory is a system of keeping track of units of  an item by means of stock records in a certain period of time. Continuous inventory (also called perpetual inventory PIM) records all purchases (additions) and all sales (withdrawals) and records them on cards to keep a running balance. of costs and quantity.  A certain set number of items are counted weekly, or monthly making sure that each time was counted at least once in a year.  At the end of the year the records are adjusted in the event there are any miss matches...

    Continuous Net Settlement

    Continuous Net Settlement - The continuous net settlement is also known as a CNS. This electronic settlement system for securities, which is automated, where a company or firm uses a depository and a clearinghouse to ensure that each security request or transaction provides one net and one cash position. This reduces the risk for the buyer or seller of the security and the firm that is holding the securities by tracking and accounting for the movement of securities and cash involved in any given transaction. The use of continuous net settlement is a good measure for risk reduction on the...

    Contract for Difference

    Contract for Difference - The contract for difference is also known as CFD. A contract for difference is a legally binding contract that takes place between two persons, which mirrors the trading of a security situation, but doesn't actually involve the buying or selling of the security. These two individuals, the buy and the seller, sign a contract stating that the seller must pay the buyer any difference in price after a specified period of time if the security's price increases, and that the buyer will pay the difference if the security's price decreases. CFDs are traded in many countries...

    Contractual Plan

    Contractual Plan - a contractual plan is an agreement that is arranged between a mutual fund company and an investor. The arranged agreement is said to say that the investor agrees to deposit a certain amount of money, in certain intervals to accumulate shares of mutual funds. The agreement requires the deposits to be made at regular intervals. For example, an investor agrees to make a deposit of $100 on the first and 15th of each month. The number of shares he purchases will vary depending on the value of the mutual fund at the time of the purchase. The...

    Contributed Capital

    Contributed Capital - Contributed capital is capital which is received from stock market investors for stock in a specific company, which in turn, is the equivalent of capital stock added to contributed capital. This is also called paid-in capital. Contributed Capital shows up on a company's balance sheet under the heading of stockholder's equity and is mainly shown beside the balance sheet entry where the heading reads additional contributed capital or additional paid in capital. Preferred shares may have a par value greater than marginal; whereas common shares generally have a par value of just a few cents; therefore these...

    Controlled Company

    Controlled Company - A controlled company is a company where another company owns the majority of the voting shares. In other words, generally a parent corporation with enough voting stock in another company to control the other company's board of directors; therefore the parent company is in control of the other company's management, policies, decisions, and day to day operations. In order for a control company to exist, the parent company must possess at least 80% of the voting stock. The controlling company also has tax consolidation benefits like tax-free dividends.  Controlling Interest - Controlling interest is when a shareholder or...

    Control Premium

    Control Premium – a control premium is amount of money or assets an investor will pay to gain control of a company.  The control premium in most case is higher then the market value of the company.  The control premium is the actual difference in shares that an investor has paid to gain control.  This usually happens when there are just a few investors, and one party in particular wants the majority control of the company, thus paying a control premium to gain control. The party that is trying to gain control is most likely highly motivated to be willing...

    Convenience Yield

    Convenience Yield - a Convenience Yield is the total the premium benefit of actually holding a physical commodity A Convenience Yield is the actual owning of a particular good, rather then owning a futures contract for that good. Convenience Yields sometimes show up as an adjustment to a futures price of a commodity, or as a future contract delivery price. Sometimes Convenience Yields are earned, by holders of government bonds that are in short supply in the market. When there is a shortage of a particular good, it is better to own it now, and then purchase it later because...

    Conversion Option

    Conversion Option - a conversion option is a feature on certain preferred stocks and some bonds... This feature would allow the shareholder to covert their shares into common stock. Preferred stock, also known as Capital stock, provides a specific dividend that is paid before any dividends are paid to common stock holders the conversion option allows the shareholder to convert their shares from Preferred (or capital stock) into Common stock. Common Stock represents equity ownership, gives voting rights to share holders and allows them to share in the company's success, through dividend pay outs. Preferred stock takes precedence over common...

    Conversion Parity Price

    Conversion Parity Price - a conversion parity price is the price a shareholder pays to a convertible security and then uses his right to exercise his conversion option... A convertible security is a preferred stock, bond or debenture that is changeable into a common stock by the shareholder. The conversion parity price is equal to the convertible, then divided by the conversion ratio. The conversion ratio are the number of shares that eh convertible can be converted into. Another name for a Conversion Parity price is Market Conversion Price. Although conversion parity price is the official name, Market Conversion Price...

    Conversion Premium

    Conversion Premium - a conversion premium is the percentage or exact dollar amount by which the price of the convertible security exceeds the current market value of the common stock into which it be converted into.. The convertible security is a bond, a debenture or a preferred stock, that can be converted by a shareholder, using the option Claus, into a common stock, by the corporation. The conversion premium is the percentage amount or dollar amount of the converted stock that exceeds the current market value. The term option is the right (not a demand) to buy or sell a...

    Conversion Ratio

    Conversion Ratio - The conversion ratio are the total number of shares of common stock that can be collected, and obtained by converting individual shares of a convertible security. A convertible security are any bonds debentures, or proffered stock that are exchangeable for common stock , though the option policy for the shareholder The formula for getting the conversion ratio is the following , the conversion ratio is equal too the Parr value of the convertible bond, divided by the conversion price of equity. The higher the ratio, the higher number of common shares and the higher the numbers exchanged...

    Conversion Value

    Conversion Value - the conversion value is the total worth of a convertible security. if it is converted immediately. The value is the worth of the convertible security. A convertible security is a bond, a debenture or a preferred stock that is exchangeable the practice or exercising the option Claus, converting the preferred stock into a common stock of the issuing corporation. Once the convertible security has been optioned off (changing it from a preferred stock to a common stock, the total worth (value) of the common stock is called the conversion value. Common stock is securities representing equal ownership...

    Convertible 100

    Convertible 100 - the convertible 100 is a index that tracks the most important convertible securities to the intuitional investors, The index is Published By Goldman Sachs, Group inc ( also knows as simply Goldman Sachs) a bank holding company that is involved in investment banking, securities, and investment, founded in 1869 in his headquartered in New York City . A convertible security is a bond a debenture, or proffered stock, that is exchanged into common stock by the holder, using his option to exchange his stock into a common stock. The Convertible 100 are the top 100 convertible securities...

    Convertible Adjusted Preferred Stock

    Convertible Adjusted Preferred Stock - a convertible adjusted preferred stock is a preferred stock with the same interest rate as one of a treasury security. The convertible adjustment proffered stock (also simply CAPS) can be exchanged for cash or for shares of common stock after the company announces the date of the next dividend the convertible adjustment proffered stock is a type of mandatory convertible. A mandatory convertible is a hybrid security with characters of both equity and debt. Mandatory convertibles can be exchanged at a later date for either common stock or for a new equity issue. A CAP...

    Convertible Arbitrage

    Convertible Arbitage - a convertible arbitrage is a plan of strategy involving the purchase of convertible stock. Also included in the strategy is a plan on how to short the convertible strategy. Shorting the security is the process of exercising a short sale of the convertible stock. A convertible arbitrage is mostly exercised with hedge funds... A hedge fund is an investment fund opened to limited range of investors and pays a performance fee to its investment managers Hedge funds are used to offset losses in the principles market, most commonly...

    Convertible Auction Rate Preferred Stock

    Convertible Auction Rate Preferred Stock - a convertible auction rate preferred stock is a certain type of an auction related preferred stock that can be converted into shares of the underlying security an underlying security is a commodity or security, which is subject to delivery when an option is exercised on a convertible security. There are exceptions to the rule. including, index options (options to buy or sell shares of an index). And, futures which are settled in cash because they cant be delivered. The convertible auction rate preferred stock has its dividends rates reset by Dutch auction and usually...

    Convertible Bond

    Convertible Bond - a convertible bond is a corporate bond that can be exchanged by the shareholder as an option for a specific number of shares of either common stock or preferred stock... The convertible bond is usually a juvenile debenture (unsecured debt, backed by the integrity of the borrower and not by collateral and is recorded and documented by an agreement called a debenture. An unsecured bond is one example of a debenture. The convertible bonds in the US and Japan are the two largest in the world in terms of market capitalism, so they are of great importance...

    Convertible Debt

    Convertible Debt - the term convertible debt basically, means securities that can be converted to other specified amounts of another security at the option of the holder and issuer, either single or both... Debentures or corporate bonds are traded for commodities stock within a specific period. A debenture is a claim, lien or charge, on asset or property, usually as a result of a loan. Convertible debt is a form of debt financing that has a feature to convert debt into equity usually at the option of the investor in the event of a default on the repayment of a...

    Convertible Preferred Stock

    Convertible Preferred Stock - The term convertible preferred stock simply means preferred stock that can be converted into specified amounts of common stock at the option of the holder. Preferred stock is securities and shares that pay regular and fixed interest income, rather then a dividend whose amounts and payments depend on factors beyond the stockholders control... Not like Common stock which represent equity ownership, provide voting rights, and shareholders get to share in the company' success, through dividends that vary depending on the over all market and the over all performance of the corporation. The convertible preferred stock is...

    Convertible Security

    Convertible Security - A convertible security is an instrument of debt that combines a coupon-paying bond with the option to convert this bond so that it becomes a common stock, which has a set price. Often, these are listed as hybrid securities as they combine equity and debt features and convert them to ordinary shares on a set date, based on a predetermined ratio. When companies are doing well, investors are able to convert these securities, debentures or bonds, into stocks, which has a higher value. These stocks limit the risk and increase the potential as a diversified investment in...

    Core Holding

    Core Holding - a core holding is a long tem agreement to hold a fund. This agreement is for a substantial period of time, not for a short term basis. This holding could be for a particular mutual fund or bond, or it could be for an entire portfolio. A portfolio is a collection of stocks, mutual funds, and /or bonds all owned by the same corporation... A core holding is usually done with mutual funds, stocks, or bonds that show a positive growth, and are at least show modest growth. The amount of shares purchased will vary depending on...

    Corporate Governance Explained

    Definition: Corporate governance refers to how well a company's management and board are looking out for shareholders' interests.Advice: As shareholders, investors' should be assured that management and the board are doing the right thing for them.  Companies that do a good job of looking out for shareholders' interests are said to have good corporate governance, whereas companies that don't do the right thing are said to have poor corporate governance.In regards to corporate governance, companies that do a good job usually have a few things in common:  ...

    Corporate Bond

    Definition: A bond that is issued by a corporation to investors.  Corporate bonds are given letter grades based on how strong the company is, financially.  A bond with a low letter grade is often considered "risky", while a bond with a high letter grade is considered "safe." TeenAnalyst Advice: Corporate bonds are not considered to be...

    Corporate Charter

    Corporate Charter – a corporate charter are the bylaws and articles of a corporation that describe how the company should be managed. The corporate charter is a legal document filed by the state by the founders of the company.   The corporate charter contains the company’s objectives, its planned operations, and its structure.  The structure is a vital component because that should include how many shares it takes to control the company.  An outside investor or company could create a hostile takeover if the charter is written improperly.  By filing a corporate charter with the sate the company becomes a...

    Corporate Income Fund

    Corporate Income Fund - a corporate income fund is a specific type of a Unit Investment Trust... The UIT (Unit investment trust) has a fixed portfolio comprised only of high grade financial securities. The can be in the form of stocks, bonds, government bonds, or commercial paper. The only main character is that they are all higher grade securities. The Unit Investment Trust, which is actually a corporate income fund, is similar to a regular money market account, except it?s made up of a group of higher grade securities, and instruments, and usually pays out dividends on a monthly basis....

    Corporate Repurchase

    Corporate Repurchase - A corporate repurchase is a program, which enables companies to purchase, or boy back, its own shares from the marketplace, in order to reduce the number of shares the company has outstanding. Usually, this is a true indication that the management of the company feels that its shares are undervalued at the time of the buy back. Because this action reduces the company's shares that are outstanding, it in turn, increases the amount of earnings obtained for each share, and generally elevates the market value or all remaining shares. This type of purchase of a long position...

    Corporate Securities Limited Representative

    Corporate Securities Limited Representative - A Corporate Securities Limited Representative is an individual who has passed Series 62 exam, which is administered through the National Association of Securities Dealers. By passing, this exam the individual is given the right and license to trade asset backed securities, corporate bonds, common stock, preferred stock, money market mutual funds, plus privately issued real estate investment trusts, mortgaged backed securities, warrants, and rights. Brokers who wish to trade all securities, excluding the commodities futures, they must take a General Securities Representative Examination called the Series 7 exam, and in some states, a...

    Corporate Stock

    Corporate Stock - Corporate stock is a share or stock that indicates an ownership position or equity held within a specific company or corporation and can be retained as a claim on its proportionate share for the company or corporation's assets and profits. Although, it should be recognized that the claim to a company or corporation's earnings or assets by most stockholders is less than the claim by the company or corporation's debtors have on the company or corporation's assets and earnings. This is also known as equities or corporate stock or equity securities....

    Corporation

    Definition: A corporation is a legal entity created by one or more persons.  This entity offers limited liability status that prevents the owners from being personally responsible for the debts of the company.  A corporation also has the ability to issue stock to its owners.  ...

    Cost of Equity Capital

    Cost of Equity Capital - Cost of equity capital is a calculation to tell how much a company or corporation's common stockholders will require to generate a specific rate or return. This is normally accomplished by taking the dividends earned on each share and dividing it by the share's current market value, and then adding the share's dividend growth rate to the equation to equal the rate or return required. The stockholder's equity is generally referred to as the book value of the company or corporation. Stockholder's Equity equals the total assets minus the total liabilities. Countercyclical Stock - Countercyclical Stock...

    Cottage Industry

    Cottage Industry - a cottage industry is a term to describe a usually small scale business.  A cottage industry company may be a mom and pop operation (family run) at home, and using their own equipment...  A hand crafted business or small service business normally at home is as example of a cottage industry business...  The cottage industries prevailed in the 17th and 18th century for the most part, before the industrial revolution.  Today there are still  cottage industry business , such as sewing, accounting and bookkeeping, and small repair shops to name a few....

    Council of Institutional Investors

    Council of Institutional Investors (CII) - the Council of Institutional Investors (CII) is an organization of investment and pension related firms. The CII has over 250 firms, whose job is address issues related to the investment and pension business and to provide information to its clients. The CII also performs seminars for education reasons, address legal issues, and provide research services, all pertaining to the financial world. The CII is a non profit association of public union and corporate pension funds... The CII?s combined assets are over 3 trillion dollars. The main duty of the CII is to protect the...

    Country Basket

    Country Basket - a country basket is open market traded exchange which contains a basket of foreign stocks all combined into one security. The word “country” in the financial language, refers too being of a different nation, and the word “basket” means a group of securities created for simultaneously buying and selling. Baskets usually play a big role in hedging, index arbitration, and program trading. A country basket allows investors to hold several stocks in his portfolio and not subject him to numerous transactional costs, and /or multiple securities. Country baskets were invented by brokerage firms and they act similar...

    Coupon

    Definition: The coupon rate is the interest rate on a bond when it's issued.  So, for example, if a $1000 bond has a 10% coupon, you'd receive $100 per year in interest. Advice: Saying a bond has a 10% coupon doesn't necessarily mean that the investor can only earn a 10% annual return.  In reality, bonds are trading at prices different than their par values.  For this reason, the Yield-to-Maturity can be considerably higher if the bond is trading for a big enough discount.    ...

    Coverage Ratio

    Coverage Ratio - the term coverage ratio is a type of accounting tool that helps measure a company’s ability to survive and grow.  Simply by comparing the company’s assets (gross profits) and liabilities (expenses) are a form of figuring the coverage ratio. The higher the assets, and the lower the expenses are makes the ratio higher that the company will survive. Lenders use the coverage ratio as a tool to recognize if a company has a high percentage of being able to pay a loan off merely by looking at their assets and liabilities....

    Consumer Price Index (CPI)

    Definition: The CPI is an economic indicator that measures the change in a batch of consumer products.  The change in price is considered to be inflation.Advice: The CPI is a closely watched indicator because inflationary concerns are the big driver behind rising interest rates. When inflation is thought to be on the rise, the Fed begins to raise rates to slow the economy.  ...

    Cram-Down Deal

    Cram-Down Deal - A cram-down deal is colloquial term for when a situation occurs when shareholders are forced into a position where they must accept undesirable merger or buy out terms. These undesirable conditions could include accepting junk bonds as opposed to equity or cash, although this is usually due to the company that they have shares in finding themselves in financial trouble and needing someone to merge with them, in order for the company to survive. When they cannot find someone to merge with them, a buy out comes into play and the company generally folds....

    Critical Mass

    Critical Mass - the critical mass is the size a market or company has to attain before it is considered a fundamental change in operation...  Critical mass is a milestone in a company’s success because it is said that when a company reaches critical mass, it’s able to sustain itself and be profitable...  Critical mass is a stage where a company is solvent, and is in not need of anymore investments to remain in business. The term critical mass is derived from nuclear psychics meaning the smallest amount or substance that can sustain a nuclear reaction...

    Cross-Selling

    Cross-Selling – This is a practice that involves selling items to clients other than their current purchases. Such practiced is one that often is seen in a wide variety of industries. The objective is to offer more goods or products of a varied nature that will increase a company’s share of a given market place. Thus a company that specializes in one type of product may elect to expand into other areas. Thereby affording the company a chance to be more versatile in its given sales. And this provides an opportunity to increase its revenues by capturing more customers....

    Crossed Market

    Crossed Market - A crossed market occurs when a situation arises where a posted bid price for a specific security is higher than the specific security's offer price. Unlike normal markets, generally the bid-ask spread is positive, although in a cross market the bid-ask spread is negative, which occurs due to high-volume and volatile trading activities taking place in the stock market. This occurs mainly on the Nasdaq just before the opening bell when orders are being exchanged. NASD securities regulations prevent brokers from creating a cross market deliberately....

    Crossover Fund

    CROSSOVER FUND – a crossover fund is a mutual fund that’s traded both publicly and privately... A crossover fund can be bought and sold on the public market by investors. It also available to company’s not trading stock on the public market. A crossover fund has one distinct advantage over regular funds. A crossover fun has a huge yield opportunity unlike a regal mutual fund. Most mutual funds are designed for modest growth, but a Crossover fund can build a much faster return on the investor’s original investment. The down side of a cross over fund is the fact that...

    C Shares

    C Shares - This is a class of mutual fund with a steady load. The load is a special fee that the shareholder pays in order to maintain the investment in a mutual fund. The C Share creation is to cover the fund's costs. A constant load, unlike a front-end or back-end load, is the compensation on an ongoing basis, usually annually. Mutual funds extend the flexibility of choosing from among a variety of payment options, specifically created by alphabetical share classes. Class C shares are the most commonly available. Class C shares carry higher fund expenses on investments, but...

    Cum Rights

    Cum Rights - Cum rights are rights, which are issued by a company to their qualified shareholders that can be transferred with the sale of their shareholder's shares of the company's stock when it is sold to a different owner. These work like ex-rights, although they are transferable from one shareholder to another. The price of these stocks, with cum rights, are usually higher than the stocks with ex-rights; therefore they are a much better deal for shareholders....

    Cumulative Dividend

    Cumulative dividend - A cumulative dividend is when a limitation is placed upon a corporation's ensured payment of preferred dividends, before they are distributed to the common shareholders. When a company fails to distribute its dividends to preferred shareholders with a cumulative dividend, they have to catch up payments, before any distributions can be sent to any of the common shareholders. Unfortunately, a company's common shares do not offer the income or security that a company's preferred shares offer to its shareholders. Preferred stocks generally have a fixed dividend, which is based on the company stock's par value. Cumulative preferred -...

    Current Ratio

    Definition: The current ratio measures a company's ability to meet its current financial obligations by dividing its current assets (such as cash, accounts receivable, etc.) by its current liabilities. Advice: The current ratio is a good way to determine a company's current financial ...

    CUSIP Number

    CUSIP Number - a CUSIP number is an Identification number assigned to stocks that uniquely identifies them as a particular security. The number always contains nine digits. The CUSIP is short for the Committee on Uniform Securities and Identification Procedures... The number always contains nine digits. . The CUSIP is alphanumeric and is used for every class of traded instrument in the United States. This includes all Government, and corporate securities, and syndicated loans... The first six characters identify the issuer. The next two digits identify the issue itself. The ninth digit is called the check digit. The CUSIP number...

    Custodial Account

    Definition: The type of account created for minors that is overseen by an adult custodian.  If you are under 18 years old, you need an adult to oversee the account so this is the required account for you to open.  Once you turn 18, complete control of the account is handed over to you. TeenAnalyst Advice: In order to invest, you'll need one of these if you're under 18 years old.  They're easy to set up and the custodian doesn't have complete control.For parents out there, remember that once you make a contribution to your kid's custodial account, you cannot take...

    Customer Relationship Management

    Customer Relationship Management - This is the level of management in a given firm that is responsible for monitoring and measuring the company’s data about their customer base. Such supervision will also maintain the information with regards to any possible future clients. There are various forms of software that is available to such administration. It will assist them in compiling the pertinent facts necessary to enable a given firm to have a clear picture on how their services or products are doing in terms of customer response. They will allow for such information to be processed and analyzed such data...

    Cyclical Stock

    Cyclical Stock - The cyclical stock is profit highly correlated with the business cycle. When the economy is in a growth period, it experiences higher than usual profits. When the economic status begins to slow down, the same is for the projections. This is predominant in industries including the automobile, manufacturing sector and the travel industry. It is the discretionary purchases that are set aside during thinning economic structure. The investor with a projected time calendar will buy at this time. It is a stock that includes an upward movement, as growth of the economy is strong and the opposite...

    Most Popular Articles
    Most Popular Definitions
     
    Daily Definition

    Definition of the Day Survivorship Bias

    Survivorship Bias In many cases, a company that has made it through a rough patch in its existence will be penalized in any reports that come out because of survivorship bias. These reports will not show that other companies have gone out of business during the...

    read entire definition

     
     

     

     

    Home     About Us    Contact Us     Contribute     Sitemap

    A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

    Copyright © 2009 TeenAnalyst.com