Investor Glossary - CInsightful stock market charts - Click here

 # 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     

C

C2C
C2C is the abbreviation for consumer-to-consumer electronic commerce. C2C is an electronic Internet-facilitated medium that involves transactions between consumers  more...
http://www.investorglossary.com/c2c.htm

calendar year
Calendar year defines the year as designated by the Gregorian calendar in common use as beginning on January 1st and  more...
http://www.investorglossary.com/calendar-year.htm

call
A call is a type of option contract. A call option gives the call owner the right (but not  more...
http://www.investorglossary.com/call.htm

call option
A call option is an option contract that gives the owner (also called the buyer or holder) the right to  more...
http://www.investorglossary.com/call-option.htm

call price
The call price is the price at which an issuer of a security can redeem that security. The call  more...
http://www.investorglossary.com/call-price.htm

cancelled check
A cancelled check is a check that has been approved by a bank or another financial institution. Once a check  more...
http://www.investorglossary.com/cancelled-check.htm

candlestick charts
Candlestick charts plot stock price data. Originated by Japanese rice merchants, candlestick charts are used both to identify price patterns  more...
http://www.investorglossary.com/candlestick-charts.htm

capacity utilization rate
The capacity utilization rate is the value of production capacity which is actually being utilized over a specific period of  more...
http://www.investorglossary.com/capacity-utilization-rate.htm

capex
Capex, an abbreviated word that signifies “capital expenditures,” capex is the amount of money spent by a company to upgrade,  more...
http://www.investorglossary.com/capex.htm

capital appreciation
Capital appreciation is defined as any increase in the market price of a stock. Investors who are long the  more...
http://www.investorglossary.com/capital-appreciation.htm

capital appreciation fund
A capital appreciation fund is a mutual fund that is structured to gain the maximum amount of growth possible. To  more...
http://www.investorglossary.com/capital-appreciation-fund.htm

Capital Asset Pricing Model
Capital Asset Pricing Model (CAPM) is a sophisticated mathematical method of formulating a relationship between expected risk and expected return.  more...
http://www.investorglossary.com/capital-asset-pricing-model.htm

capital gain
A capital gain is an increase in the value of an asset above its purchase price. Capital gains have special  more...
http://www.investorglossary.com/capital-gain.htm

capital gains distribution
A capital gains distribution is a distribution of income from a mutual fund to its shareholders. It occurs when the  more...
http://www.investorglossary.com/capital-gains-distribution.htm

capital gains tax
Capital gains are subject to capital gains tax. A capital gain is the profit earned by selling capital assets (stocks,  more...
http://www.investorglossary.com/capital-gains-tax.htm

capital goods
In a basic sense, capital goods are goods used for the purpose of producing other goods. Capital goods would include  more...
http://www.investorglossary.com/capital-goods.htm

capital stock
Capital stock is stock authorized for issue by the charter of any company. Capital stock includes both common and  more...
http://www.investorglossary.com/capital-stock.htm

capitalism
Capitalism is a market-driven economy, characterized by private ownership and use of resources owned for profit without restrictions. Individuals and  more...
http://www.investorglossary.com/capitalism.htm

capitalization
The market capitalization (market cap) of a company is the stock price multiplied by the number of shares outstanding. Capitalization  more...
http://www.investorglossary.com/capitalization.htm

cash
Cash consists of paper currency and coins. In the U.S. cash existed as coins until 1862, when the first  more...
http://www.investorglossary.com/cash.htm

cash asset ratio
The cash asset ratio – also known as the cash ratio – is a stringent test of a company's liquidity.  more...
http://www.investorglossary.com/cash-asset-ratio.htm

cash basis
Cash basis is an accounting method that recognizes revenue and expense only when cash is paid or received. The cash  more...
http://www.investorglossary.com/cash-basis.htm

cash cow
A cash cow represents the division of a company that provides a steady and significant cash flow. A cash  more...
http://www.investorglossary.com/cash-cow.htm

cash dividend
A cash dividend is the distribution of a company’s profits to it’s shareholders. Although every company is unique, dividends are typically  more...
http://www.investorglossary.com/cash-dividend.htm

cash equivalents
Cash equivalents are investments that are so liquid and so safe that they are nearly the same as cash. Statement  more...
http://www.investorglossary.com/cash-equivalents.htm

cash flow
Cash flow is a company's net inflow or outflow of cash. A cash flow statement (formally known as the statement  more...
http://www.investorglossary.com/cash-flow.htm

cash out
The term cash out applies to a type of mortgage refinancing where the property owner receives cash by taking on  more...
http://www.investorglossary.com/cash-out.htm

cash reserves
A company’s cash reserves are the funds available to meet its needs for cash, especially unanticipated needs. What level  more...
http://www.investorglossary.com/cash-reserves.htm

cashier's check
A cashier's check is issued and certified by a bank on its own account. A purchaser acquires a cashier's  more...
http://www.investorglossary.com/cashier's-check.htm

casualty insurance
Generally, casualty insurance is a type of indemnity that provides coverage against loss from injury or property loss. Specifically, casualty  more...
http://www.investorglossary.com/casualty-insurance.htm

CBOE
The CBOE, or Chicago Board Options Exchange, was founded in 1973 as an exchange devoted entirely to trading options contracts.  more...
http://www.investorglossary.com/cboe.htm

CBOT
The CBOT, or Chicago Board of Trade, is the world’s oldest exchange for trading commodity futures and options. The  more...
http://www.investorglossary.com/cbot.htm

CD
A CD, or Certificate of Deposit, is a savings instrument issued by a bank or thrift. The CD pays  more...
http://www.investorglossary.com/cd.htm

Central Bank
A central bank is fundamentally a chief bank of a given nation. The essential responsibilities of the central bank include  more...
http://www.investorglossary.com/central-bank.htm

CEO
CEO or chief executive officer is a bureaucratic position that carries the ultimate management responsibility for an organization. Commonly, CEO  more...
http://www.investorglossary.com/ceo.htm

Certified Financial Planner
Certified Financial Planner, or CFP, is a financial professional who is approved by the Certified Financial Planner Board of Standards.  more...
http://www.investorglossary.com/certified-financial-planner.htm

Certified Public Accountant
A Certified Public Accountant (CPA) is a person licensed by a state board of accountancy to practice public accounting. The  more...
http://www.investorglossary.com/certified-public-accountant.htm

CFA
CFA stands for Chartered Financial Analyst, a professional designation given by the CFA Institute to investment professionals. The CFA  more...
http://www.investorglossary.com/cfa.htm

CFO
CFO, or Chief Financial Officer, is senior corporate officer with full financial authority. In general terms, the main responsibility of  more...
http://www.investorglossary.com/cfo.htm

CFP
CFP is short for certified financial planner, which is a professional designation in the financial planning industry. The CFP  more...
http://www.investorglossary.com/cfp.htm

Chairman of the Board
The Chairman of the Board is a senior corporate figure who presides over the board of directors. Much like  more...
http://www.investorglossary.com/chairman-of-the-board.htm

Chapter 11
Chapter 11 is a section of the US Bankruptcy Reform Act of 1978. Chapter 11 allows partnerships, corporations, and individuals  more...
http://www.investorglossary.com/chapter-11.htm

charge card
A charge card is the physical card that records an account number of a buyer in a retail payment system.  more...
http://www.investorglossary.com/charge-card.htm

Chartered Financial Analyst
A Chartered Financial Analyst (CFA) is an investment professional who meets standards of competence and integrity necessary to pass the  more...
http://www.investorglossary.com/chartered-financial-analyst.htm

chartist
A chartist is an investor who attempts to predict market movements through the use of chart patterns. A chartist believes  more...
http://www.investorglossary.com/chartist.htm

chasing the market
An investor who is chasing the market purchases securities after a market has already risen or sells securities after a  more...
http://www.investorglossary.com/chasing-the-market.htm

checking account
A checking account is an account at a depository institution against which checks may be written to make payments.  more...
http://www.investorglossary.com/checking-account.htm

Chief Operating Officer
A chief operating officer is an executive who is responsible for the day-to-day operations of a company. The chief operating  more...
http://www.investorglossary.com/chief-operating-officer.htm

child and dependent care credit
The child and dependent care credit is a federal income tax credit. The child and dependent care credit is available  more...
http://www.investorglossary.com/child-and-dependent-care-credit.htm

churn rate
Churn rate is a measure of customer attrition. The churn rate is defined as the percentage of customers who  more...
http://www.investorglossary.com/churn-rate.htm

churning
Churning means excessive buying and selling in a client’s account by a broker for the primary purpose of generating commissions  more...
http://www.investorglossary.com/churning.htm

circuit breaker
The stock market circuit breaker has the same purpose as the electric switch in most homes: to shut the system  more...
http://www.investorglossary.com/circuit-breaker.htm

Class A Shares
Class A shares of stock are generally thought of as a preferred tier of classified stock. In many companies,  more...
http://www.investorglossary.com/class-a-shares.htm

class action suit
A class action suit is a lawsuit filed by one or more individuals belonging to a large group on a  more...
http://www.investorglossary.com/class-action-suit.htm

Class B Shares
Class B shares are a classification of common stock that may or may not have more voting rights than Class  more...
http://www.investorglossary.com/class-b-shares.htm

class C shares
Class C shares are a common class of mutual funds. Class C shares of this type are often referred  more...
http://www.investorglossary.com/class-c-shares.htm

closed-end fund
A closed-end fund is legally known as a closed-end management company. A closed-end fund issues a fixed number of  more...
http://www.investorglossary.com/closed-end-fund.htm

closing bell
The closing bell is a signal which marks the end of an exchange's daily trading session. Not all exchanges use  more...
http://www.investorglossary.com/closing-bell.htm

closing costs
Most generally, closing costs is associated with a cost of a transaction. However, more commonly closing costs pertain to real  more...
http://www.investorglossary.com/closing-costs.htm

closing price
The closing price of a stock is the price of the final trade of the trading day. Unfortunately the final  more...
http://www.investorglossary.com/closing-price.htm

coincident indicator
A coincident indicator is an economic indicator that measures the current state of the economy of a nation. The coincident  more...
http://www.investorglossary.com/coincident-indicator.htm

COLA
COLA, or cost-of-living adjustment, is an act of adjusting wages to create economic balance for the changes in the cost  more...
http://www.investorglossary.com/cola.htm

COMEX
Commodity Exchange Inc. (COMEX) was established in 1933 through the merger of four smaller exchanges based in New York: the  more...
http://www.investorglossary.com/comex.htm

command economy
A command economy, also called planned economy, is directly controlled by the government. The state owns all property and  more...
http://www.investorglossary.com/command-economy.htm

commercial bank
A commercial bank is a financial intermediary which collects credit from lenders in the form of deposits and lends in  more...
http://www.investorglossary.com/commercial-bank.htm

commercial hedger
A commercial hedger is a corporation that attempts to stabilize the price of a commodity by taking a position or  more...
http://www.investorglossary.com/commercial-hedger.htm

commercial loan
A commercial loan is a loan borrowed by a company to pay for any of several financial needs. A commercial  more...
http://www.investorglossary.com/commercial-loan.htm

commercial mortgage
A commercial mortgage is a mortgage which is secured by real estate which is used by a business. Also,  more...
http://www.investorglossary.com/commercial-mortgage.htm

commercial paper
Commercial paper is a debt instrument issued by well-established companies to meet short-term financing needs. Commercial paper calls for the  more...
http://www.investorglossary.com/commercial-paper.htm

commission
A commission is a fee paid to a third party in exchange for assistance in completing a financial transaction. A  more...
http://www.investorglossary.com/commission.htm

commodity
Generally speaking, any tangible good can be categorized as a commodity. A commodity is typically a bulk good such as  more...
http://www.investorglossary.com/commodity.htm

Commodity Exchange
A commodity exchange is a market organized to allow for the selling and buying of commodities. Commodities, which are  more...
http://www.investorglossary.com/commodity-exchange.htm

commodity futures
Commodity futures are futures contracts for delivery of commodities. The oldest commodity futures market is the Chicago Board of  more...
http://www.investorglossary.com/commodity-futures.htm

Commodity Futures Trading Commission
The Commodity Futures Trading Commission is an independent federal regulatory agency. The Commodity Futures Trading Act of 1974 established  more...
http://www.investorglossary.com/commodity-futures-trading-commission.htm

common stock
Common stock is a security representing a legal claim to a percentage of a company's earnings and assets. Holders of  more...
http://www.investorglossary.com/common-stock.htm

composite
A composite, or composite index, is an aggregation of components to produce a broad statistical measure. A stock index, for  more...
http://www.investorglossary.com/composite.htm

Compound Annual Growth Rate
The compound annual growth rate (CAGR) measures the annual change in earnings, an investment, or some other financial amount. The  more...
http://www.investorglossary.com/compound-annual-growth-rate.htm

compound annual return
The compound annual return shows the investment return, assuming the investment grew at the same rate every year. For example,  more...
http://www.investorglossary.com/compound-annual-return.htm

compound growth rate
The compound growth rate measures average growth of an amount over time. In other words, the compound growth rate assumes  more...
http://www.investorglossary.com/compound-growth-rate.htm

compound interest
Compound interest is the payment of interest on both principal as well past accrued interest. The opposite of compound interest  more...
http://www.investorglossary.com/compound-interest.htm

conference call
A conference call refers to investors, media and interested parties who call a phone number, usually toll-free, to hear the  more...
http://www.investorglossary.com/conference-call.htm

confidence indicator
A confidence indicator gauges the optimism of a group of participants in an economy or a securities market. Perhaps the  more...
http://www.investorglossary.com/confidence-indicator.htm

confidentiality agreement
Confidentiality agreement, also called nondisclosure agreement, is a contract entered into by two or more individuals, in which all parties  more...
http://www.investorglossary.com/confidentiality-agreement.htm

conforming loan
A conforming loan is a residential mortgage that is eligible for purchase by the Fannie Mae (FNMA) and Freddie Mac  more...
http://www.investorglossary.com/conforming-loan.htm

consensus forecast
A consensus forecast aggregates the estimates of security analysts of key market-moving data, particularly a company's quarterly earnings per share  more...
http://www.investorglossary.com/consensus-forecast.htm

consensus recommendation
The consensus recommendation is an average of analyst ratings on a stock. Suppose five security analysts follow Acme stock; two  more...
http://www.investorglossary.com/consensus-recommendation.htm

consolidate loans
When a person seeks to consolidate loans, he/she is essentially taking out one loan to pay off many others.  more...
http://www.investorglossary.com/consolidate-loans.htm

consolidated financial statement
A consolidated financial statement presents the financial position or results of a parent company and its subsidiaries as if it  more...
http://www.investorglossary.com/consolidated-financial-statement.htm

consolidation loan
Consolidation loan is a type of loan that encompasses a number of other liabilities into one loan. The greatest advantage  more...
http://www.investorglossary.com/consolidation-loan.htm

constant dollar GDP
Constant dollar GDP is gross domestic product adjusted for price changes. Gross domestic product is the total market value of  more...
http://www.investorglossary.com/constant-dollar-gdp.htm

constant dollars
Constant dollars are dollars that have been adjusted for the impact of inflation, as opposed to current dollars, which are  more...
http://www.investorglossary.com/constant-dollars.htm

consultant
A consultant is an individual or firm that offers expert advice or provides a professional service in exchange for a  more...
http://www.investorglossary.com/consultant.htm

consumer confidence
Consumer confidence is an attempt to measure the public's perception of the state of the economy. Consumer confidence readings  more...
http://www.investorglossary.com/consumer-confidence.htm

consumer confidence index
The Consumer Confidence Index (CCI) gauges the level of optimism of Americans toward the U.S. economy. The Consumer Confidence Index  more...
http://www.investorglossary.com/consumer-confidence-index.htm

consumer durables
In US macroeconomic statistics, consumer durables are those durable goods produced for purchase by consumers. All durable goods, including  more...
http://www.investorglossary.com/consumer-durables.htm

consumer goods
In economics, consumer goods are new items intended for sale to consumers. Consumer goods are thus distinguished from capital  more...
http://www.investorglossary.com/consumer-goods.htm

Consumer Price Index
The Consumer Price Index, also known as the CPI, is released monthly by the US Department of Labor. It measures  more...
http://www.investorglossary.com/consumer-price-index.htm

contract size
Contract size is the deliverable amount on a contract. The quantity of goods or commodities deliverable on any future,  more...
http://www.investorglossary.com/contract-size.htm

contrarian
Simply put, a contrarian is an investor who makes investments that are contrary to current market sentiment. For example,  more...
http://www.investorglossary.com/contrarian.htm

controlling interest
Controlling interest is simply an ownership status where a corporation or an individual owns fifty percent or more of a  more...
http://www.investorglossary.com/controlling-interest.htm

conventional mortgage
A conventional mortgage is a fully amortizing mortgage. The conventional mortgage can have either a fixed or a variable  more...
http://www.investorglossary.com/conventional-mortgage.htm

convertible bond
A convertible bond is a debt instrument that holders can convert into a fixed number of shares at a specified  more...
http://www.investorglossary.com/convertible-bond.htm

COO
COO, or Chief Operating Officer, is a member of upper level management who is responsible for the company’s day-to-day operations.  more...
http://www.investorglossary.com/coo.htm

cooking the books
Cooking the books is an unethical practice of misrepresenting company’s financial standing. When cooking the books, corporations typically manipulate their  more...
http://www.investorglossary.com/cooking-the-books.htm

copyright
Copyright is a protection offered by the United States to creators of original works of authorship. The Copyright Law  more...
http://www.investorglossary.com/copyright.htm

cornering the market
Cornering the market occurs when an investor or group of investors purchases enough stock or a sufficient quantity of a  more...
http://www.investorglossary.com/cornering-the-market.htm

corporate stock
Corporate stock is the capital or monetary fund that a company raises through the sale of shares. Shares of  more...
http://www.investorglossary.com/corporate-stock.htm

correction
A market correction is a decline in price following an extended rise in price. Unlike a market crash, a correction  more...
http://www.investorglossary.com/correction.htm

correlation
In statistics, correlation is an assessment of the extent of linear relationship between two variables. A correlation coefficient is  more...
http://www.investorglossary.com/correlation.htm

correlation coefficient
A correlation coefficient is a numerical, descriptive measure of the strength of the linear relationship between two variables. Values  more...
http://www.investorglossary.com/correlation-coefficient.htm

cost basis
Cost basis reflects the true cost of purchasing a financial asset held over an extended period of time. The longer  more...
http://www.investorglossary.com/cost-basis.htm

cost of equity
The cost of equity is the minimum rate of return that a business or organization must offer investors or owners  more...
http://www.investorglossary.com/cost-of-equity.htm

cost-of-living index
A cost-of-living index measures the changes of prices consumers pay for a fixed basket of goods and services over time.  more...
http://www.investorglossary.com/cost-of-living-index.htm

cost/benefit analysis
Cost/benefit analysis is a process of quantifying the most economically feasible outcome by weighing potential costs against potential benefits. Cost/benefit  more...
http://www.investorglossary.com/cost-benefit-analysis.htm

cottage industry
A cottage industry is a system of production which takes place in private homes rather than in a factory, with  more...
http://www.investorglossary.com/cottage-industry.htm

countercyclical
A trend is countercyclical if it moves in the opposite direction of the business cycle. For instance, the US  more...
http://www.investorglossary.com/countercyclical.htm

Coverdell Education Savings Account
Formerly called the education IRA, the Coverdell education savings account is an investment plan used for funding a child’s college  more...
http://www.investorglossary.com/coverdell-education-savings-account.htm

covered call
A covered call is a short call option which is backed -- or covered -- by sufficient pre-purchased shares of  more...
http://www.investorglossary.com/covered-call.htm

covered option
A covered option is either a put or a call option which is covered (backed) by sufficient shares of the  more...
http://www.investorglossary.com/covered-option.htm

covered put
A covered put is a put option which is sold by an investor and which is covered (backed) by a  more...
http://www.investorglossary.com/covered-put.htm

CPA
A CPA, the common acronym for Certified Public Accountant, is an accountant licensed by a state board to engage in  more...
http://www.investorglossary.com/cpa.htm

CPI
CPI is the common abbreviation for the Consumer Price Index, which measures the change in prices urban Americans pay for  more...
http://www.investorglossary.com/cpi.htm

Crash of 1929
The Crash of 1929 took place from September through November 1929, when the Dow shed over one-third of its value  more...
http://www.investorglossary.com/crash-of-1929.htm

Crash of 1987
The Crash of 1987, Black Monday, took place on October 19, 1987. During the Crash of 1987, the Dow  more...
http://www.investorglossary.com/crash-of-1987.htm

credit card
A credit card is the small plastic card issued to the borrower. the credit card issuer agrees to lend the  more...
http://www.investorglossary.com/credit-card.htm

credit history
Credit history is generally a temporal record of repaying debt. Additionally, credit history is an indication of one’s credit worthiness,  more...
http://www.investorglossary.com/credit-history.htm

credit limit
A credit limit is the explicit borrowing ceiling set by a lender for a particular customer. The credit facility  more...
http://www.investorglossary.com/credit-limit.htm

credit report
A credit report is a detailed synopsis of information collected about an individual by one of the major credit bureaus.  more...
http://www.investorglossary.com/credit-report.htm

credit score
A credit score is a value computed by a credit reporting agency, or credit bureau, and based upon information about  more...
http://www.investorglossary.com/credit-score.htm

credit union
A credit union is a member-owned and controlled, financial cooperative that is entirely operated by and for its members.  more...
http://www.investorglossary.com/credit-union.htm

CSO
CSO is an abbreviation for Chief Security Officer. A CSO is the top executive of a corporation responsible for  more...
http://www.investorglossary.com/cso.htm

cumulative dividend
A cumulative dividend is a dividend that, if the company doesn't pay it when it is due, must be paid  more...
http://www.investorglossary.com/cumulative-dividend.htm

cumulative total return
The cumulative total return on an investment is the total profit -- including dividends, interest and capital gains -- received  more...
http://www.investorglossary.com/cumulative-total-return.htm

current dollars
Current dollars (also known as "nominal dollars") are dollars in the year they were actually received or paid, unadjusted for  more...
http://www.investorglossary.com/current-dollars.htm

current market value
The current market value of a stock is its most recent trade. Since the current market value of a stock  more...
http://www.investorglossary.com/current-market-value.htm

current ratio
Current ratio is balance-sheet financial performance measure of company liquidity. Current ratio is calculated by dividing current assets by  more...
http://www.investorglossary.com/current-ratio.htm

current yield
Current yield is equal to a bond’s annual interest payment divided by its current market price. A bond with  more...
http://www.investorglossary.com/current-yield.htm

CUSIP
CUSIP is an abbreviation for Committee on Uniform Securities Identification Procedures of the American Bankers Association. CUSIP numbers are  more...
http://www.investorglossary.com/cusip.htm

cycle
A cycle is a recurring pattern, usually wavelike. In business there are a few common patterns like this, such  more...
http://www.investorglossary.com/cycle.htm

cyclical
When entire industries and the companies within them are characterized as cyclical or non-cyclical it is typically, but not always,  more...
http://www.investorglossary.com/cyclical.htm

cyclical stock
A cyclical stock is one whose profits are highly correlated with the business cycle. When the economy is in expansion,  more...
http://www.investorglossary.com/cyclical-stock.htm

Home | Term of the Day | Tell a Friend | Suggest a Term | Edit Subscriber Detail
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2008 Investor Glossary - All rights reserved