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C
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Callable
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Redeemable by the issuer before the
scheduled maturity date.
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Callable CD
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Certificate of Deposit that can be redeemed
at par prior to its original stated maturity at the option of the issuer.
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Call Risk
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Risk to a bond holder that a bond may be
redeemed before scheduled maturity. The main risk of having a bond called
before maturity is that the investor will be unable to replace the bond's
yield with another similar quality bond paying the same yield.
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Cash Dividend
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A distribution of earnings to shareholders,
prorated by class of security and paid in cash.
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Certificate of Deposit (CD)
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Debt instrument issued by a bank that
usually pays interest. Maturities range from a few weeks to several years.
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Contingent Deferred Sales Charge (CDSC)
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A mutual fund term used to describe a fee
imposed when shares are redeemed within a given time period.
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Clearing Agent
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An organization that is exchange-affiliated
and facilitates the validation, delivery and settlement of securities
transactions.
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Closed-End Fund
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A mutual fund term used to describe a type of
Investment Company that has a fixed number of shares that are publicly
traded.
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Combination
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An options trading strategy involving two
long or two short positions with different expiration dates or strike
prices.
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Concentrated Account
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Formal memorandum from a broker to a client
giving details of a securities transaction. When a broker acts as a dealer,
the confirmation must disclose the fact to the customer.
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Contribution
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Deposit made to an Individual Retirement
Account (IRA). According to IRS regulations, contributions must be made
with cash. Contributions cannot be made in the form of stock to an IRA
account.
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Corporate Bond
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Debt instruments issued by companies as a way
to raise cash for capital expansion or growth.
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Coupon or Coupon Rate
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Interest rate on a debt security the issuer
promises to pay to the holder until maturity, expressed as an annual
percentage of face value.
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Covered Calls
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An options strategy involving the sale of a
call contract while having the equivalent number of shares held in case of
exercise. Considered a conservative
strategy in options and is used to produce income.
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CUSIP
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Number identifying all stocks and registered
bonds, using the Committee on Uniform Securities Identification Procedures
(CUSIP). Brokers use a security's CUSIP number to get further information.
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Custodial Account
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An account created for a minor, where the
custodian manages cash and other property gifted to minors under the
Uniform Gifts to Minors Act (also known as the Uniform Transfers to Minors
Act). When the child reaches the age of majority, usually 18, they have
full discretion over the account, unless the account is set up in a trust
controlled be the parent.
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