Glossary List starting with Alphabet

CAD stands for Canadian Dollars and is the currency of Canada. The most popular exchange rate at Canada is USD/CAD, which is US dollar versus Canadian dollar. CAD is represented by the symbol $.

A call option is a specialized form of right or privilege given to the investor to buy a stock, bond, commodity or any other form of financial instrument at a specified price and within the specified time-frame.

When there is a rise in the value of an asset due to increased value of the same asset at the market, the phenomenon is known as capital appreciation. The value of the asset stands higher than what the investor had paid for, while purchasing the same.

Capital gains tax is a type of tax that is levied on the investors, based on the profits accrued over selling a capital asset at a price higher than its initial purchase price. Capital gains tax can be levied only when the investor realizes the value of the asset and not while he/she is holding it.

Capital protection funds are funds that offer investors with an ample protection against their capital funds in the eventuality of an economic downturn while providing them with an enhanced rate of returns on their investment by allowing them to take part in certain market appreciation schemes linked to equity.

CSDL stands for Central Depository Services Ltd. It is the second largest depository holding in India situated in Mumbai. A depository is a central domain wherein securities or shares of various companies are held in an electronic form.

A certificate of deposit or CD is a kind of a savings certificate which comes with a fixed maturity date and provides specified rate of interest to investment holders. A CD can be issued in any denomination after the investor complies with the minimum investment requirements.

Churning is an illegal and unethical practice adopted by greedy traders in respect to the financial parlance. The broker or trader indulges in excessive trading from a single client's account just to generate huge sums of commissions.

Regulators at the stock exchange market just put a temporary halt to buying and selling of individual securities. This is what is known as a circuit breaker. The move is effected just to curb panic selling and buying of securities especially at a time when the markets are highly volatile.

Collar is a protective strategy put in place by the SEC (Securities Exchange Commission) after a long position on a stock has experienced substantial capital gains. While an investor simultaneously transacts an out-of-the-money call option while purchasing an out-of-the-money put option, a collar position is automatically being created.