Calendar Spreadderivatives
A calendar spread is an options strategy that uses two options on the same underlying with the same strike price but different expiration dates.
Terms starting with “C”
107 definitions found.
Call Optionderivatives
A call option is a derivatives contract that gives the holder the right, but not the obligation, to acquire a specified quantity of an underlying asset at a predetermined strike price, in exchange for a premium, before o…
Callable Bondfixed_income
A callable bond is a debt security that gives the issuer the right to redeem the bond before its stated maturity at a defined price.
Calmar Ratiorisk_portfolio
The Calmar Ratio is a risk-adjusted performance metric that divides a portfolio's compounded annual growth rate (CAGR) by its maximum drawdown over the same period.
Capderivatives
Cap is an interest-rate derivative that provides an upper bound on a floating reference rate by triggering payments when the reference rate exceeds a specified cap level.
Cap Rateasset_classes
Cap rate, short for capitalization rate, is the ratio of a property's annual net operating income (NOI) to its current market value or acquisition price. It provides a snapshot of the property's income-generating efficie…
Capacity Utilizationmacro
Capacity utilization is a macroeconomic measure of how fully a country's productive resources are being used, typically expressed as the ratio of actual output to potential output.
Capital Allocationrisk_portfolio
Capital allocation is the process of directing financial resources across competing uses—such as investments, projects, and liquidity reserves—to pursue an organization’s objectives while considering risk and return.
Capital Allocation Linerisk_portfolio
A Capital Allocation Line (CAL) is the set of portfolios formed by mixing a risk-free asset with a single risky portfolio. It shows how expected return changes with risk as the allocation to the risky portfolio varies.
Capital Allocation Line (CAL)risk_portfolio
The Capital Allocation Line (CAL) is the straight line in mean-variance space that shows all combinations of a risk-free asset and a given risky portfolio. Its slope equals the Sharpe ratio of that risky portfolio, and t…
Capital Asset Pricing Modelrisk_portfolio
Capital Asset Pricing Model (CAPM) is a financial model that describes the relationship between the expected return of an asset and its systematic risk, measured by beta, using the risk-free rate and the expected market …
Capital Asset Pricing Model (CAPM)risk_portfolio
The Capital Asset Pricing Model (CAPM) is a finance model that relates the expected return of an asset to its exposure to market risk, as measured by beta. It uses the risk-free rate and the expected market risk premium …
Capital Expendituresfundamental
Capital Expenditures (CAPEX) are funds used by a company to acquire, upgrade, or maintain physical assets with a useful life beyond one year.
Capital Leasefundamental
A capital lease is a lease arrangement that, for accounting purposes, is treated as the acquisition of an asset and a corresponding liability because it transfers substantially all the risks and rewards of ownership to t…
Capital Market Linerisk_portfolio
The Capital Market Line (CML) is the straight line on a risk-return plot showing the set of efficient portfolios formed by combining a risk-free asset with the market portfolio. Its slope equals the market portfolio’s Sh…
Capital Market Line (CML)risk_portfolio
The Capital Market Line (CML) is the line on the mean‑variance plane representing the set of portfolios that combine the risk‑free asset with the market portfolio; its slope equals the market portfolio's Sharpe ratio, an…
Capital Stackcorporate
Capital stack refers to the layers of capital financing that fund a company or project, ordered by seniority of claims on assets and cash flows. The order determines who gets paid first in liquidation and how risk and re…
Capital Structurecorporate
Capital structure is the mix of a company's long-term funding sources—debt, preferred stock, and equity—used to finance its operations and growth. It reflects how a firm balances financial risk and return.
Capitalization Rateasset_classes
The capitalization rate (cap rate) is the ratio of a property's annual net operating income to its market value or purchase price, used to estimate the unlevered return on an income-producing real estate investment.
Carryfixed_income
Carry is the return from holding a fixed-income asset that comes from the income (coupon) and any roll-down along the yield curve, excluding price changes caused by shifts in interest rates.
Cash and Cash Equivalentsfundamental
Cash and cash equivalents (CCE) are the most liquid assets on a balance sheet. They include cash on hand, demand deposits, and short-term investments that are readily convertible to known amounts of cash with original ma…
Cash Basis Accountingfundamental
Cash basis accounting is an accounting method that records revenues when cash is received and expenses when cash is paid. It is commonly used by individuals and some small businesses that do not carry inventory.
Cash Flow From Financing Activitiesfundamental
Cash Flow From Financing Activities (CFF) is the section of the cash flow statement that reports cash inflows and outflows from transactions with lenders and owners, including issuing or repaying debt, issuing or repurch…
Cash Flow From Investing Activitiesfundamental
Cash Flow From Investing Activities (CFI) is the net cash generated or used by a company in its investing activities during a period. It covers purchases and disposals of long-term assets and investments such as property…
Cash Flow From Operationsstyles
Operating cash flow (OCF), also called cash flows from operating activities, is the net cash generated or used by a company’s core business operations during a reporting period.
Cash Flow Statementfundamental
A cash flow statement is a financial report that summarizes cash inflows and outflows over a period, categorized into operating, investing, and financing activities.
Cash Settlementderivatives
Cash settlement is a method of settling a derivatives contract by paying the net cash value at expiration, rather than delivering the underlying asset. The payment is derived from the difference between the contract pric…
Central Bank Asset Purchasesmacro
A central bank policy tool in which the central bank purchases government securities and other financial assets from the market to inject liquidity and influence longer-term interest rates.
Central Bank Independencemacro
Central bank independence is the extent to which a country's central bank operates free from direct political control in setting monetary policy, including decisions on policy instruments and communications. The concept …
Central Limit Order Book (CLOB)microstructure
A Central Limit Order Book (CLOB) is a centralized electronic trading system that publicly lists orders to acquire or dispose of an asset, and automatically matches orders at specified prices, maintaining a live ledger o…
Chaikin Money Flow (CMF)technical
Chaikin Money Flow (CMF) is a volume-based technical oscillator that measures buying and selling pressure by combining price movement within the daily range with volume over a lookback period.
Chaikin Oscillatortechnical
The Chaikin Oscillator is a technical momentum indicator that measures the short-term momentum of the Accumulation Distribution Line by subtracting the 10-period EMA of the ADL from the 3-period EMA of the ADL.
Charmderivatives
Charm is the rate of change of an option's Delta with respect to time to expiration, while other factors remain constant.
Chief Compliance Officer (CCO)regulation
The Chief Compliance Officer (CCO) is a senior executive responsible for ensuring an organization complies with applicable laws, regulations, and internal policies. The CCO leads the compliance program, monitors regulato…
Clean Pricefixed_income
The clean price of a bond is the quoted price excluding accrued interest; the dirty price, paid at settlement, equals the clean price plus accrued interest.
Clearingmicrostructure
Clearing is the post-trade process that determines each party's obligations after a trade and, in many markets, uses a clearinghouse to interpose as the counterparty to both sides via novation, preparing the transaction …
Clearing Housemicrostructure
An institution that acts as a central counterparty to trades, clearing and settling them to reduce counterparty risk and improve settlement efficiency.
Closed-End Fundasset_classes
A closed-end fund is a pooled investment fund that raises a fixed amount of capital through an initial public offering and then trades on a stock exchange, with its market price determined by supply and demand rather tha…
Closing Conditionscorporate
Closing conditions are requirements that must be satisfied (or waived) before a corporate transaction can close. They cover regulatory approvals, financing contingencies, and other agreed-upon conditions.
Code of Ethicsregulation
A Code of Ethics is a formal document that sets out the fundamental values and expected behaviors for a company and its personnel, with emphasis on integrity and avoidance of conflicts of interest. It guides decision mak…
Cold Storageasset_classes
Cold storage is the practice of keeping private keys or other authentication credentials offline to reduce exposure to online threats. It involves storing these keys in devices or formats that are not connected to the in…
Collateralasset_classes
Collateral is an asset pledged to secure a loan or other obligation, giving the lender a claim to that asset if the borrower defaults.
Commodity Channel Index (CCI)technical
The Commodity Channel Index (CCI) is a momentum oscillator that measures how far a security's price deviates from its statistical mean over a selected period.
Commodity ETFasset_classes
An exchange-traded fund that provides exposure to one or more commodities. It achieves this by holding futures contracts, commodity-linked assets, or other strategies designed to track commodity prices.
Common Stockfundamental
Common stock represents an ownership stake in a corporation and typically entitles the holder to voting rights and a residual claim on assets and earnings after creditors and any preferred stock.
Comparable Company Analysis (Comps)corporate
Comparable Company Analysis (Comps) is a relative valuation method that estimates a company’s value by comparing it with similar publicly traded firms using market-based multiples such as enterprise value to EBITDA (EV/E…
Compliance Officerregulation
A compliance officer is a person responsible for ensuring a company adheres to applicable laws, regulations, and internal policies. In many organizations, the Chief Compliance Officer (CCO) leads the function.
Compliance Programregulation
A Compliance Program is a formal, organization-wide framework of policies, procedures, training, and controls. It helps a company comply with applicable laws and regulations and manage regulatory risk.
Conditional Value at Riskrisk_portfolio
Conditional Value at Risk (CVaR) is a risk measure that estimates the average loss in the tail of the loss distribution beyond a specified Value at Risk (VaR) threshold; it is commonly referred to as Expected Shortfall (…
Conditional Value at Risk (CVaR)risk_portfolio
Conditional Value at Risk (CVaR) is a risk measure that estimates the average loss in the tail of the loss distribution beyond a specified Value at Risk (VaR) threshold.