Confirmation A written statement following a security trade. A confirmation may be issued once after the execution detailing commission, settlement date and terms. … [Read more...]
Conflict Between Bondholders and Stockholders
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Conflict Between Bondholders and Stockholders Bondholders and stockholders may have conflicting interest in a corporation in areas such as dividends, underinvestment and distortion of investment. Protective covenants are established to avoid such problems. … [Read more...]
Conglomerate
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Conglomerate Company that has interest and operations in two or many non related areas. … [Read more...]
Conglomerate Merger
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Conglomerate Merger Merger of two or many companies that may be engaged in different, non related business activities. … [Read more...]
Consensus Forecast
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Consensus Forecast A mean value determined from all the forecasts made for a company by financial analysts. … [Read more...]
Consequential Loss
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Consequential Loss Loss arising from non usage of business property or equipment due to uncontrollable reasons. Considered an indirect loss as compared to direct losses that are covered under different types of insurance. … [Read more...]
Consol
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Consol Bond that is not issued in capital markets in U.S., that has indefinite life. … [Read more...]
Consolidation
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Consolidation Grouping two or more businesses to create a new business. … [Read more...]
Consortium Banks
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Consortium Banks Subsidiary of a merchant bank established by several banks of same or varying nationalities. Such banks participate actively in loan syndication and are found in Euromarket most commonly. … [Read more...]
Constant-Growth Model
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Constant-Growth Model Gordon-Shapiro model that applies the dividend discount model. Assumptions: (a) Future dividends have a fixed growth rate, (b) One single rate of discount. … [Read more...]
Consumer Credit
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Consumer Credit Also termed retail credit. Firm’s credit granted to consumers so that they may purchase goods or services. … [Read more...]
Consumer Price Index
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Consumer Price Index A measure of prices of consumer goods and services and of the inflation pace in the U.S. The CPI is published each month by U.S. Department of Labor. … [Read more...]
Contango
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Contango Condition prevailing in the market where futures prices in the later/ distant delivery months are higher. … [Read more...]
Contingent Claim
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Contingent Claim When a specified outcome or more such outcomes occur, the claim that can be made. … [Read more...]
Contingent Immunization
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Contingent Immunization Active investment strategy used with bond portfolio wherein the money manager continues the same investment strategy until unfavorable investments push the present potential return to safety-net return level. An immunization strategy is now needed to be … [Read more...]
Contingent Pension Liability
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Contingent Pension Liability Provisions of ERISA whereby a firm must pay up to 39% of the firm’s net worth to plan participants. … [Read more...]
Contingent Voting Power
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Contingent Voting Power Granting of voting power to preferred shareholders, that occurs when a company fails to fulfill obligations described in the shareholding arrangement. Additional security is offered to holders of preferred instruments. … [Read more...]
Continuous Compounding
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Continuous Compounding Accumulation of time value of money on a recurring or immediate basis forward in time. Interest accrues continuously, is also earned on itself continuously. … [Read more...]
Continuous Random Variable
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Continuous Random Variable Random value capable of assuming any fractional value that is within a specified range, as opposed to a variable that is deemed discrete. … [Read more...]
Contract
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Contract Denotes a trading agreement for a commodity or financial future. Also refers to any agreement between two parties of any transaction. … [Read more...]
