C Corporation

A business structure taxed separately from owners, offering liability protection but double taxation.

C-Suite

Senior executives (e.g., CEO, CFO) overseeing strategic and financial operations.

Call

An option contract giving the right to buy an asset at a set price by a deadline.

Call Option

A derivative allowing the holder to buy an asset at a specified strike price.

Callable Bond

A bond the issuer can redeem before maturity, often when interest rates fall.

Canceled Check

A processed check marked by a bank to prevent reuse.

Candlestick

A chart showing a security’s open, high, low, and close prices for technical analysis.

Cap and Trade

A system limiting emissions via tradable permits to meet environmental goals.

Capacity Utilization Rate

The percentage of production capacity in use, indicating operational efficiency.

CAPE Ratio

Cyclically adjusted price-to-earnings ratio, using 10-year average earnings for stock valuation.

Capital

Financial resources (e.g., cash, equipment) used to generate wealth.

Capital Account

A balance of payments component tracking capital transfers and asset acquisitions.

Capital Adequacy Ratio (CAR)

A bank’s capital relative to risk-weighted assets, ensuring stability (Basel III).

Capital Asset

Long-term assets (e.g., property, stocks) held for investment or business.

Capital Asset Pricing Model (CAPM)

A model calculating expected returns using risk-free rate, beta, and market return.

Capital Budgeting

Planning and evaluating long-term investments for profitability.

Capital Employed

Total assets minus current liabilities, measuring funds used in operations.

Capital Expenditure

Funds spent on acquiring or upgrading long-term assets, like buildings.

Capital Gain

Profit from selling an asset above its purchase price.

Capital Gains Tax

Tax on profits from selling capital assets, like stocks or real estate.

Capital Goods

Durable goods (e.g., machinery) used in production, not final consumption.

Capital Improvement

Upgrades to assets (e.g., renovations) increasing value or useful life.

Capital Investment

Funds allocated to acquire or improve long-term assets for growth.

Capital IQ

A financial data platform for company, market, and investment analysis.

Capital Leases

Leases treated as asset purchases, recorded as liabilities on the balance sheet.

Capital Loss Carryover

Taxable losses from asset sales carried forward to offset future gains.

Capital Market Line (CML)

A graph showing risk-return tradeoffs for efficient portfolios in CAPM.

Capital Markets

Markets for trading long-term securities, like stocks and bonds.

Capital Project

A long-term investment in assets or infrastructure requiring significant funding.

Capital Stock

Total shares a company is authorized to issue, representing ownership.

Capital Structure

The mix of debt and equity financing a company’s operations.

Capitalism

An economic system driven by private ownership, markets, and profit motives.

Capitalization

The total value of a company’s shares (market cap) or its capital structure.

Capitalization Rate

Net operating income divided by property value, assessing real estate returns.

Capitalization Table

A chart detailing a company’s equity ownership, including shares and percentages.

Capitalize

Recording an expense as an asset, amortized over time.

Capitalized Cost

Costs recorded as assets, depreciated over time rather than expensed.

Capitalized Interest

Interest added to a loan’s principal, increasing total debt (e.g., during construction).

Capitulation

Mass selling of assets at a loss, signaling market panic.

Carbon Credit

A tradable permit allowing a set amount of carbon emissions in cap-and-trade.

Carding

Illegal use of stolen credit card data for unauthorized purchases.

Carriage and Insurance Paid to (CIP)

A trade term where the seller pays freight and insurance to a destination.

Carried Interest

A share of private equity/hedge fund profits (typically 20%) paid to managers.

Carve-Out

Selling a portion of a company (e.g., a division) as a separate entity or IPO.

Cash Accounting

Recording revenue/expenses when cash changes hands, not when earned/incurred.

Cash Advance

A short-term loan from a credit card or lender, often with high fees/interest.

Cash-and-Carry-Arbitrage

Profiting by buying an asset and selling its futures when futures prices exceed spot.

Cash and Cash Equivalents (CCE)

Liquid assets (e.g., cash, T-bills) convertible to cash within 90 days.

Cash Back

A reward or refund in cash/credit for purchases or loan repayments.

Cash Balance Pension Plan

A hybrid pension with defined benefits and employee contribution accounts.

Cash Budget

A plan forecasting cash inflows/outflows to manage liquidity.

Cash Conversion Cycle (CCC)

Time to convert investments into cash, measuring operational efficiency.

Cash Cow

A profitable business/product generating steady cash with minimal investment.

Cash Dividend

A payment to shareholders from profits, typically in cash per share.

Cash Equivalents

Short-term, liquid investments (e.g., T-bills) maturing within 90 days.

Cash Flow

Net cash moving in/out of a business or investment.

Cash Flow from Financing Activities (CFF)

Cash from debt, equity, or dividend transactions on the cash flow statement.

Cash Flow from Investing Activities

Cash used/generated from asset investments, like equipment or securities.

Cash Flow from Operating Activities (CFO)

Cash from core business operations, like sales or services.

Cash Flow Statement

A financial statement showing cash inflows/outflows from operating, investing, and financing.

Cash Management

Strategies to optimize liquidity, control cash, and maximize returns.

Cash-on-Cash Return

Annual cash flow divided by cash invested, measuring real estate returns.

Cash on Delivery (COD)

Payment due upon receipt of goods, reducing seller credit risk.

Cash-Out Refinance

Replacing a mortgage with a larger one, taking the difference in cash.

Cash Ratio

Cash + equivalents divided by current liabilities, showing ability to pay short-term debts.

Cash Surrender Value

Amount payable if a life insurance policy is terminated before maturity.

Cash Value Life Insurance

A policy combining death benefits with a savings component accumulating cash value.

Catalog of Federal Domestic Assistance (CFDA)

A discontinued U.S. database of federal grants, now at SAM.gov.

Caveat Emptor (Buyer Beware)

Buyers assume purchase risks unless protected by warranties.

Caveat Venditor

Sellers are responsible for product quality, opposite of caveat Emptor.

Central Counterparty Clearing House (CCP)

An entity guaranteeing trades, reducing counterparty risk.

Central Limit Theorem (CLT)

Sample means approximate a normal distribution with large samples, used in finance.

Centrally Planned Economy

Government controls production, prices, and resources (e.g., communism).

Certainty Equivalent

A guaranteed amount preferred over a risky outcome with the same expected value.

Certificate of Deposit (CD)

A fixed-term bank deposit with higher interest, penalizing early withdrawals.

Certificate of Insurance (COI)

Proof of insurance coverage, required in business contracts.

Certificate of Origin (CO)

A document certifying a product’s country of origin for trade.

Certified Financial Planner (CFP)

A designation for advisors skilled in financial planning and wealth management.

Certified Information Systems Auditor (CISA)

A certification for auditing IT/financial systems for security and compliance.

Certified Management Accountant (CMA)

A credential for accountants specializing in management accounting and strategy.

Certified Public Accountant (CPA)

A licensed accountant for auditing, tax, and financial advisory services.

Ceteris Paribus

"All else equal," used in economic/financial analysis to isolate variables.

Chairman

The board of directors’ leader, overseeing governance and strategy.

Channel Stuffing

Inflating sales by pushing excess inventory to distributors, misrepresenting performance.

Chapter 11 Bankruptcy

U.S. bankruptcy allowing reorganization while continuing operations, protecting from creditors.

Chart of Accounts (COA)

A list of a company’s financial accounts for organizing transactions.

Chartered Accountant (CA)

A global accounting designation, similar to CPA, for finance and auditing.

Chartered Financial Analyst (CFA)

A credential for investment professionals in portfolio management and analysis.

Chartered Retirement Planning Counselor (CRPC)

A designation for advisors specializing in retirement planning.

Chattel Mortgage

A loan secured by movable property (e.g., equipment), not real estate.

Cheapest to Deliver (CTD)

The lowest-cost bond deliverable in a futures contract, minimizing costs.

Check

A written order directing a bank to pay a specified amount.

Checking Account

A bank account for daily transactions, like deposits and payments.

Checks and Balances

A system ensuring no entity has unchecked power, used in governance.

Chi Square Statistic

A test comparing observed data to expected outcomes, used in financial modeling.

Chief Executive Officer (CEO)

The top executive managing a company’s operations and strategy.

Chief Financial Officer (CFO)

The executive overseeing financial planning, reporting, and risk management.

Chief Operating Officer (COO)

The executive managing daily operations and implementing strategies.

Chief Technology Officer (CTO)

The executive responsible for technological strategy and innovation.

Child Tax Credit

A U.S. tax credit (up to $2,000 per child in 2025) for qualifying children.

Chinese Wall

Ethical/legal barriers preventing information sharing between departments, like in banks.

Churn Rate

The percentage of customers/subscribers lost, impacting revenue.

Churning

Excessive trading by a broker to generate commissions, often unethical.

Circular Flow of Income

A model showing money flows between households, businesses, and government.

Classical Economics

A theory emphasizing free markets and minimal government intervention.

Clawback

Recovering paid compensation (e.g., bonuses) due to misconduct or restatements.

Clayton Antitrust Act

A 1914 U.S. law prohibiting anti-competitive practices, strengthening antitrust rules.

Clearing

Confirming, settling, and guaranteeing financial transactions between parties.

Clearing House

An intermediary ensuring transaction completion, reducing counterparty risk.

Close Position

Exiting a trade by selling/buying back a security, locking in gains/losses.

Closed Economy

An economy without international trade or capital flows, rare today.

Closed-End Fund

A fund with a fixed number of shares, traded like stocks, often at a premium/discount to NAV.

Cloud Computing

On-demand computing resources via the internet, used in financial tech.

Chicago Board Options Exchange (CBOE)

A U.S. exchange for trading options and volatility products, like VIX.

Chicago Mercantile Exchange (CME)

A global exchange for futures and options, trading commodities and currencies.

Coase Theorem

Efficient outcomes occur with clear property rights and low transaction costs.

Code of Ethics

Guidelines ensuring integrity in financial practices.

Coefficient of Determination

R², measuring how much a model explains a variable’s variation.

Coefficient of Variation (CV)

Standard deviation divided by mean, measuring risk relative to return.

CoInsurance

The insured pays a percentage of covered losses, sharing risk with the insurer.

Collar

An options strategy combining a protective put and covered call to limit risk/reward.

Collateral

Assets pledged to secure a loan, seized if the borrower defaults.

Collateralized Debt Obligation (CDO)

A security backed by a pool of debts, distributing risk to investors.

Collateralized Loan Obligation (CLO)

A CDO backed by corporate loans, structured into risk/return tranches.

Collateralized Mortgage Obligation (CMO)

A security backed by mortgages, structured into tranches with varying risks.

Collection Agency

A firm recovering overdue debts for creditors, for a fee or percentage.

Collusion

Illegal agreements to manipulate markets or prices.

Combined Loan-To-Value Ratio (CLTV Ratio)

Total loan amounts divided by property value, used in mortgage lending.

Combined Ratio

Losses plus expenses divided by premiums, measuring insurance profitability.

Command Economy

Government controls production, prices, and resources, like in communism.

Commerce

The exchange of goods, services, or money, driving economic activity.

Commercial

Business activities aimed at generating profit or trade.

Commercial Bank

A bank offering loans, deposits, and payment services to businesses/individuals.

Commercial Loan

A loan to businesses for operations or capital needs, often secured.

Commercial Mortgage-Backed Security (CMBS)

A security backed by commercial real estate loans, offering income to investors.

Commercial Paper

Short-term, unsecured corporate debt to finance immediate needs.

Commercial Real Estate

Property used for business, like offices or retail, often financed or leased.

Commercialization

Bringing a product or service to market for profit.

Commingled Fund

A pooled investment vehicle combining assets for diversification.

Commission

A fee paid to brokers for facilitating transactions, like stock trades.

Commodity

A raw material (e.g., oil, gold) traded in markets.

Commodity Futures Contract

An agreement to buy/sell a commodity at a set price on a future date.

Commodity Trading Advisor (CTA)

A professional managing investments in commodities or futures.

Common Equity Tier 1 (CET1)

A bank’s core capital (e.g., common stock) under Basel III for stability.

Common Law

A legal system based on precedent, impacting financial contracts.

Common Size Financial Statement

Financials expressed as percentages for comparison across firms or periods.

Common Size Income Statement

Income statement with each line as a percentage of revenue for analysis.

Common Stock

Equity representing ownership with voting rights and potential dividends.

Communism

A system with collective ownership, eliminating private property.

Community Reinvestment Act (CRA)

A U.S. law encouraging banks to lend in low-income areas for community development.

Comparable Company Analysis (CCA)

Valuing a firm by comparing its metrics to similar public companies.

Comparative Advantage

Producing a good/service at a lower opportunity cost than others.

Comparative Market Analysis

Estimating property value by comparing to similar recently sold properties.

Compensatory Damages

Payments to compensate for losses in legal disputes.

Competitive Intelligence

Gathering data on competitors to inform business strategies.

Competitive Advantage

A unique edge (e.g., cost, innovation) to outperform rivals.

Complement

Goods used together (e.g., cars and fuel), with demand for one affecting the other.

Compliance Officer

A professional ensuring adherence to financial regulations and policies.

Compound Annual Growth Rate (CAGR)

Annualized growth rate of an investment, assuming reinvested returns.

Compound Interest

Interest earned on principal and prior interest, boosting returns.

Compounding

Earnings generating further earnings over time, increasing wealth.

Comprehensive Income

Net income plus unrealized gains/losses (e.g., from investments) in equity.

Comps

Comparable sales or companies used for valuation or benchmarking.

Conditional Probability

Likelihood of an event given another occurs, used in risk analysis.

Conditional Value at Risk (CVaR)

Expected loss in extreme scenarios beyond a confidence level.

Confidence Interval

A range estimating a parameter’s true value with specified probability.

Conflict of Interest

Personal/financial interests compromising objectivity in decisions.

Conflict Theory

Competition for resources drives economic/social outcomes.

Conglomerate

A corporation owning diverse businesses for risk diversification.

Consignment

Goods held by a retailer but owned by the supplier until sold.

Consolidate

Combining financial statements of parent and subsidiaries into one report.

Consolidated Omnibus Budget Reconciliation Act (COBRA)

U.S. law allowing continued health coverage after job loss, at employee cost.

Consolidation

Merging companies/assets or a market phase with stable prices.

Construction Loan

A short-term loan for building projects, disbursed in stages.

Consumer Credit

Loans/credit for personal use, like credit cards or auto loans.

Consumer Discretionary

Goods/services (e.g., luxury, entertainment) bought with disposable income.

Consumer Goods

Products for personal use, like food or electronics.

Consumer Packaged Goods (CPG)

Low-cost, frequently purchased goods like food or toiletries.

Consumer Price Index (CPI)

A measure of inflation tracking price changes in consumer goods.

Consumer Surplus

Benefit when consumers pay less than their maximum willingness to pay.

Consumer Staples

Essential goods (e.g., food, hygiene) with stable demand.

Consumerism

A culture emphasizing consumption of goods/services.

Consumption Function

A model showing consumer spending as a function of income.

Contango

When futures prices exceed spot prices, often due to storage costs.

Contingency

A plan or reserve for unexpected financial or operational events.

Contingent Asset

A potential asset dependent on future events, like lawsuit winnings.

Contingent Beneficiary

A secondary recipient of benefits (e.g., insurance) if the primary beneficiary cannot claim.

Contingent Convertible

Bonds converting to equity under specific conditions, like bank capital shortages.

Contingent Liability

A potential obligation (e.g., lawsuits) dependent on future events.

Contingent Value Rights (CVR)

Rights to future payments tied to specific events, like drug approvals.

Continuous Compounding

Interest calculated and added continuously, maximizing returns.

Contra Account

An account offsetting another (e.g., accumulated depreciation reduces assets).

Contract For Differences (CFD)

A derivative betting on price movements without owning the underlying asset.

Contractionary Policy

Monetary/fiscal measures reducing economic activity to curb inflation.

Contrarian

An investor betting against market trends, seeking undervalued opportunities.

Contributed Capital

Funds shareholders invest in a company, like paid-in capital.

Contribution Margin

Revenue minus variable costs, measuring profitability per unit sold.

Controller

A financial officer overseeing accounting, reporting, and compliance.

Conventional Mortgage

A mortgage not insured by government programs, often requiring higher credit.

Convertible Bond

A bond convertible into shares of the issuer’s stock at a set price.

Convertible Preferred Stock

Preferred shares convertible into common stock, offering flexibility.

Convexity

A measure of a bond’s price sensitivity to interest rate changes, beyond duration.

Cook the Books

Illegally manipulating financial records to misrepresent performance.

Copyright

Legal protection for original works, relevant in IP valuation or licensing.

Core Competencies

Unique strengths (e.g., technology) giving a company a competitive edge.

Corporate Bond

Debt issued by corporations to raise funds, paying interest to bondholders.

Corporate Charter

A legal document establishing a corporation’s structure and purpose.

Corporate Citizenship

A company’s social, environmental, and ethical responsibilities to stakeholders.

Corporate Culture

A company’s values, norms, and behaviors shaping its operations and reputation.

Corporate Finance

Managing a company’s financial activities, like capital structure and investments.

Corporate Governance

Systems and policies directing and controlling a company’s operations.

Corporate Hierarchy

The organizational structure of authority, from executives to employees.

Corporate Social Responsibility (CSR)

Business practices promoting social, environmental, and ethical benefits.

Corporate Tax

Taxes on a corporation’s profits, varying by jurisdiction and structure.

Corporation

A legal entity separate from owners, offering liability protection and taxed independently.

Correction

A market decline of 10-20%, adjusting overvalued prices without entering a bear market.

Correlation

A measure of how two variables (e.g., stock prices) move together.

Correlation Coefficient

A statistic (-1 to 1) quantifying the strength of a correlation between variables.

Correspondent Bank

A bank providing services (e.g., payments) for another bank, often internationally.

Cost Accounting

Tracking and analyzing costs to improve business efficiency and profitability.

Cost and Freight (CFR)

A trade term where the seller pays shipping costs to a destination port.

Cost Basis

The original cost of an asset, used to calculate capital gains/losses.

Cost-Benefit Analysis

Comparing costs and benefits to evaluate a project’s or investment’s viability.

Cost of Capital

The required return to finance a company’s operations, blending debt and equity costs.

Cost Control

Strategies to minimize expenses, enhancing profitability or efficiency.

Cost of Debt

The effective interest rate a company pays on borrowed funds.

Cost of Equity

The return required by shareholders, often calculated via CAPM or dividend models.

Cost of Goods Sold (COGS)

Direct costs of producing goods sold, like materials and labor.

Cost, Insurance and Freight (CIF)

A trade term where the seller pays shipping and insurance to a destination.

Cost of Labor

Total expenses for employee wages, benefits, and related costs.

Cost of Living

The amount needed to maintain a standard of living, varying by location.

Cost-of-Living Adjustment (COLA)

Wage or benefit increases tied to inflation, often in pensions or contracts.

Cost of Revenue

Costs directly tied to generating revenue, like production or service delivery.

Cost Per Click (CPC)

The cost advertisers pay for each click on an online ad.

Cost Per Thousand (CPM)

The cost of 1,000 ad impressions, used in advertising pricing.

Cost-Plus Contract

A contract where payment covers costs plus a fixed profit margin.

Cost-Push

Inflation caused by rising production costs, like wages or materials.

Cost-Volume-Profit (CVP)

Analysis of how costs, volume, and prices affect profitability.

Cottage Industry

Small-scale, home-based production, often less relevant in modern finance.

Counteroffer

A response to an offer proposing different terms, common in negotiations.

Counterparty

The other party in a financial transaction or contract.

Counterparty Risk

The risk that a counterparty fails to meet its obligations in a transaction.

Countertrade

Exchanging goods/services instead of cash, often in international trade.

Coupon Rate

The annual interest rate paid by a bond, expressed as a percentage of par value.

Covariance

A measure of how two variables (e.g., stocks) move together, used in portfolio analysis.

Covenant

A bond or loan agreement clause restricting or requiring actions by the borrower.

Cover Letter

A document accompanying a financial proposal or application, outlining intent.

Coverage Ratio

A metric (e.g., debt service coverage) assessing ability to meet financial obligations.

Covered Call

Selling a call option on an owned asset to generate income, limiting upside risk.

Covered Interest Rate Parity

A condition where currency hedging eliminates interest rate arbitrage opportunities.

Creative Destruction

Innovation replacing outdated technologies or businesses, driving economic progress.

Credit

Borrowing capacity or funds lent, repayable with interest.

Credit Analyst

A professional assessing creditworthiness of borrowers or issuers.

Credit Bureau

An agency (e.g., Experian) collecting and reporting credit information.

Credit Card

A card allowing purchases on credit, repayable with interest if not paid in full.

Credit Card Balance

The outstanding amount owed on a credit card, accruing interest if unpaid.

Credit Card Dump

Stolen credit card data sold illegally, often on the dark web.

Credit Default Swap (CDS)

A derivative insuring against debt default, transferring credit risk.

Credit Facility

A pre-approved loan or credit line for flexible borrowing.

Credit Limit

The maximum amount a borrower can access on a credit card or line.

Credit Linked Note (CLN)

A security tied to credit risk, paying based on an underlying debt’s performance.

Credit Rating

An assessment of a borrower’s ability to repay debt, by agencies like S&P.

Credit Report

A record of a borrower’s credit history, used by lenders to assess risk.

Credit Risk

The risk of loss from a borrower’s failure to repay a loan.

Credit Score

A numerical rating (e.g., FICO) of creditworthiness, affecting loan approvals.

Credit Spread

The yield difference between bonds of different credit qualities, reflecting risk.

Credit Union

A member-owned financial cooperative offering banking services, often with lower fees.

Creditor

A person or entity owed money by a debtor.

Creditworthiness

A borrower’s ability to repay debt, assessed via credit scores and history.

Cross Culture

Interactions across cultural differences, impacting global financial operations.

Cross Elasticity of Demand

How demand for one good changes with the price of another (e.g., substitutes).

Cross-Sell

Offering related products/services to existing customers to increase sales.

Crowdfunding

Raising funds from many small investors, often via online platforms.

Crowding Out Effect

Government borrowing reducing private investment by raising interest rates.

Crude Oil

A commodity used in energy and manufacturing, heavily traded in futures markets.

Crypto Token

A digital asset on a blockchain, representing specific functions or assets.

Cryptocurrency

Decentralized digital currency (e.g., Bitcoin) using blockchain for secure transactions.

Cum Dividend

A stock trading with the right to receive an upcoming dividend payment.

Cum Laude

An academic honor for high achievement, relevant in hiring for financial roles.

Cup and Handle Pattern

A bullish chart pattern signaling a price breakout after consolidation.

Currency

A system of money used in a country, like USD or EUR.

Currency Carry Trade

Borrowing in a low-interest currency to invest in a higher-yielding one for profit.

Currency Exchange

Converting one currency to another, often with fees or spreads.

Currency Peg

Fixing a currency’s value to another (e.g., USD), stabilizing exchange rates.

Currency Swap

Exchanging principal and interest in different currencies between parties.

Current Account

A balance of payments component tracking trade, services, and income flows.

Current Account Deficit

When a country’s imports and outflows exceed exports and inflows.

Current Assets

Assets (e.g., cash, receivables) convertible to cash within a year.

Current Liabilities

Obligations (e.g., payables, short-term debt) due within a year.

Current Ratio

Current assets divided by current liabilities, measuring short-term liquidity.

Current Yield

A bond’s annual coupon divided by its market price, showing income return.

CUSIP Number

A unique identifier for securities, used for tracking and settlement.

Custodial Account

An account managed for a minor or beneficiary, often for investments.

Custodian

An entity holding and safeguarding financial assets for clients.

Customer

An individual or entity purchasing goods/services, driving revenue.

Customer Relationship Management (CRM)

Tools/strategies to manage customer interactions, boosting sales and loyalty.

Customer Service

Support provided to customers, impacting satisfaction and retention.

Customer to Customer (C2C)

Transactions between consumers, often via platforms like eBay.

Cyclical Industry

Industries (e.g., autos) sensitive to economic cycles, fluctuating with growth/recession.

Cyclical Stocks

Stocks of companies tied to economic cycles, performing well in expansions.

Cyclical Unemployment

Joblessness tied to economic downturns, decreasing during recoveries.