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 Account
Concentration Account The central account that is the recipient of funds transferred from different lockboxes at various locations. … [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...]