Glossary List C

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.

These are bonds that protect the investors against excessive market volatility. They offer good returns on investment and also offer protection against the investor's capital investment despite higher triggers of economic down turns.

Collateral is an exchange of a property or any other valuable asset a borrower offers to the lender, just to secure a loan. The lender can realize the complete worth of the collateral, just in case the borrower fails to make the promised loan amounts on time.

FATF stands for Financial Action Task force. The FATF provides the investors with a list of countries with whom, trading or processing of transactions are highly prohibitive in nature. This measure is known as combating financing of terrorism.

Commodities relate to day to day products we use in our everyday lives. These include coal, crude oil, petroleum products, pulses and millets, gold, silver, copper and lot many. Indulging with these on an investment portfolio is what is known as commodity trading.

When you calculate the mean value or moving averages of an investment portfolio over a period of one year or more, the statistical measure that is arrived at, is what gives Compounded Annual Growth Rate or CAGR.

Consumer Price Index or CPI is a statistical measure arrived at, by tracking changes in price levels of products and services as utilized by households. CPI is calculated using the prices of commodities collected as samples over frequent periods of time.

A contingent deferred sales charge or CDSC is a kind of an investment fee, mutual fund companies impose on their investors. This is while they decide to sell their mutual fund shares before the expiration of the scheme, per say.

Contra funds are an unconventional form of investments fund managers propose. These are investments that are either under-performing or depressed at the current point of time but with the anticipation that these investments are likely to provide superlative returns in future.

Contract notes are the most vital pieces of information available to a stock investor. These contain a complete list of all transactions made by the investor on his investment portfolio.

Credit Info Bureau India Ltd or CIBIL is the first credit rating agency founded in India during the year 2000. This credit rating agency maintains a complete record of individual's payments with respect to loans and credit cards.

A credit rating is an overall assessment of a loan borrower's credit worthiness before a short-term, medium-term or long-term loans are availed by the aforesaid member. A credit rating check can apply to any form of borrower, be it an individual, a partnership entity or a corporate entity. Credit rating checks are performed by credit rating agencies.

Currency market is a trading market where different forms of currencies are traded against one another. Just like equity market or stock exchange market, a currency market can also be influenced by market fluctuations and economic ups/downs.

Currency peg is an exchange-rate policy initiated by the Government wherein the central bank's rate of exchange is attached to or pegged with the exchange rate of another country's currency. The currency pegs are initiated to stabilize the exchange rates between two countries or two economies with a motive of bringing down the value of imports.

Currency trading is clearly defined as a process in which investors indulge in buying and selling different currencies of the world. The FOREX (Foreign Exchange) is the market that let investors' trade currencies in volume.

A current account can also be termed as a businessman's account wherein money can be withdrawn without any prior notice and is mainly opened to facilitate frequent deposits as well as withdrawals by means of cheques.

A current account is the indicator of an economy's health which is calculated as the sum of Balance of trade (Exports less imports), net income from abroad and net current transfers. If the country's imports exceed that of exports, then the economy is said to have a current account deficit.

A custodian is clearly defined as a financial conglomerate which is involved in safe-keeping of investors securities in the form of shares, certificates and data information reports. The securities' along with other assets can either be held in physical or in an electronic format.

Cut-off time in business parlance, refers to the last point of time, during the day, where inter-bank payments such as Fed Wire transfers and cheques clearances are submitted to the automated clearing house or inter-bank clearing system.

Cyclical stocks refer to those companies whose securities are sharply impacted by ups and downs in the economy. These companies churn out discretionary items consumers can buy more of, while the economy is in a promising stage or is in a booming period and can buy less of, during the time of recession.