Investing Terms "C"
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.