Investing Terms "C"

A B C D E F G H I J-L M N O P Q-R S T U V W-Z

Call Option - the option to buy a given stock at a given price before a given date.

Capital Gain - profit from the sale of assets.

Capital Gains Tax - tax applicable to gains realized from the sale of capital assets, including stocks and bonds.

Cash Cow - any business venture, operation, or product that is a dependable source of income or profit.

Cash Dividend - a dividend paid in cash to holders of a firm's stock.

Certificate of Deposit (CD) - a written acknowledgment of a bank that it has received from the person named a specified sum of money as a deposit, often for a fixed term at a specified interest rate.

Chicago Board of Trade - a major exchange in the United States that deals in futures.

Closing Price - the final price of a stock or bond at the end of a trading day.

Commission - fee levied by a broker to undertake a trade on behalf of a customer.

Commodity - any unprocessed or partially processed good, as grain, fruits, and vegetables, or precious metals.

Common Stock - stock that entitles the owner to a share of the corporation's profits and a share of the voting power in shareholder elections.

Compound Interest - interest paid on both the principal and on accrued interest.

Consumer Price Index - an index of prices used to measure the change in the cost of basic goods and services in comparison with a fixed base period.

Corporate Bonds - debt securities issued by private and public corporations.

Corporation - a legal entity that is separate and distinct from its owners.

Cyclical Stock - a stock that rises quickly when economic growth is strong and falls quickly when growth is slowing down.