Compounding Frequency

Compounding Frequency In one year the number of periods in which compounding of interest is carried out. In quarterly compounding the interest is compounded 4 times. … [Read more...]

Compounding Period

Compounding Period Extent of time that elapses before compounding of interest takes place. For instance, in the case of quarterly compounding, the time elapsed is a quarter. … [Read more...]

Comprehensive Due Diligence Investigation

Comprehensive Due Diligence Investigation Evaluation of firm’s financial abilities and business structure when it makes a securities offering to ensure that all pertinent details and future prospects are disclosed to the public by means of the prospectus. … [Read more...]

Concentration Bank

Concentration Bank Primary bank of any organization, or the bank where most transactions are conducted by the organization. Most organizations use several banks, but a significant number and quantity of dealings are done with one bank. … [Read more...]

Concentration Services

Concentration Services Transferring cash to one concentration account from various lockbox locations so as to make investments and disbursements. … [Read more...]

Concession Agreement

Concession Agreement Formal understanding that a company has with host government outlining the various rules for carrying out local business operations. … [Read more...]

Conditional Sales Contracts

Conditional Sales Contracts Contracts that have several similarities with equipment trust certificates but the lenders are usually the manufacturer of equipment or financial institution or company that has bought the conditional sales contract from the manufacturer. … [Read more...]

Confidence Indicator

Confidence Indicator Evaluates investor confidence in the economy and markets. Low confidence level is considered a sign of a bear trend by technical analysts. … [Read more...]

Confidence Level

Confidence Level Extent of assurance present that a given failure level is not crossed. … [Read more...]

Confirmation

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

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

Conglomerate Company that has interest and operations in two or many non related areas. … [Read more...]

Conglomerate Merger

Conglomerate Merger Merger of two or many companies that may be engaged in different, non related business activities. … [Read more...]

Consensus Forecast

Consensus Forecast A mean value determined from all the forecasts made for a company by financial analysts. … [Read more...]

Consequential Loss

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

Consol Bond that is not issued in capital markets in U.S., that has indefinite life. … [Read more...]

Consolidation

Consolidation Grouping two or more businesses to create a new business. … [Read more...]

Consortium Banks

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

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...]