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CAC 40
[Compagnie des Agents de Change 40 Index] |
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CAGR
[Compound Annual Growth Rate] |
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Call Option
The right to buy a security at a given price (or range) within a specific time period. |
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Call Protection
Provision which protects the investor against the early repayment of a bond or debenture. |
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Capital
The accumulated wealth of a company, which is capable of generating income. |
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Capital Apreciation
An increase in the market price of an asset. |
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Capital Gain
The amount by which an asset's selling price exceeds its initial purchase price. |
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Capital Loss
The difference between the net cost of a security and the net sale price when that security is sold at a loss. |
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Capital Market
The market for trading long-term debt instruments (those that mature in more than one year). |
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Capital market instrument
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Capitalization
The sum of a corporation's long-term debt, stock and retained earnings. |
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Capitalization Rate
The discount rate used to determine the present value of a stream of future earnings. |
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Capitalization Ratios
The percentage of each capital component (debt, preferred stock, common stock, other equity) represented in a company's total capitalization. |
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CAPM
[Capital Asset Pricing Model]Capital asset pricing model, a famous financial model that relates the rate of return on an asset to its riskyness relative to the market and to the risk premium associated with the market: |
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Capped-style Option
An option with an established profit limit. |
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Carried Interest
Portion of any gains realized by a Private Equity fund to which the fund manager is entitled after capital repayment and interest levied on capital (see hurdle rate). |
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Cash Basis
The accounting practice of recording sales and expenses only when cash is actually received or paid out (as opposed to accrual basis). |
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Cash-flow
A company's cash flow is based on the cash receipts minus cash payments over a given period of time. |
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Catch-up
A provision, mainly in the case of investment funds, which grants the manager the payment of an increased later compensation provided that the distribution of profits of the fund is being delayed until a hurdle rate has been reached. |
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Cede & Co (USA)
A firm acting as the recorded owner ("Nominee") of securities held in street name for several major brokerage firms and other financial institutions. |
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Cedel S.A.
See Clearstream. |
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Cheap Stock
Stock or rights to purchase stock issued to employees, consultants, promoters etc, of the issuer at a price lower than the public offering price, particulary if issued within one year prior to the public offering. |
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Class Action Suit
A lawsuit brought by one person on behalf of a group of individuals all having the same grievance (collective suit). |
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Classified Stock
The division of a company's capital stock into various classes, such as Class A and Class B etc. |
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Claw back Option
The right to require repayment of funds set aside for a specific purpose which have been disbursed in a manner inconsistent with or contrary to the rules or agreements governing the disbursement. |
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Clearstream
Previously Cedel SA. |
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Closed Corporation
A corporation in which all of the voting stock is held by a few shareholders, such as management or family members. |
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Closed End Fund
A fund with a fixed number of shares. |
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Closely Held
A corporation in which most of the stock is held by a small number of shareholders. |
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Coaching
In the field of venture capital the management, the follow up or the assistance at strategic and operational level provided by external experts to a young company. |
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Co-Investment
An investment that is made alongside with one or several other investors. |
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Collateral
Tangible assets of the borrower, such as real estate or equipment, for which a lender has a legal entitlement until a loan obligation is fully reimbursed. |
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Combination Stock Option Plan
A plan under which a company grants both Incentive Stock Options and Non-Qualified Stock Options. |
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Comfort Letter or Cold ComfortLletter
A confirmation delivered by the auditors for an issuer at the time of a public offering of a bond issue or stock which confirms that there have not been any material changes in the issuer's financial conditions since the last audit. |
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Comment Letter (USA)
A letter prepared by the SEC setting forth its questions and comments with regard to a registration statement or prospectus. |
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Commercial Paper
An unsecured short term obligation issued by a corporation to finance its short-term credit needs, such as accounts receivable and inventory. |
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Commissie Voor Het Bank –en Financiewesen (CBP)
[Commission Bancaire et Financière] |
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Commitment
The obligation of the Limited Partner to invest a certain amount of capital in a Private Equity fund when the General Partner asks for it. |
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Common Stock
A unit of ownership of a corporation. |
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Common Stock Equivalents
Debt or equity type securities which can be converted into or exchanged for common stock of a corporation. |
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Common Stock Ratio
A company's common stock expressed as a percentage of its total capitalization. |
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Compensation Committee
A committee of the board of directors responsible for reviewing and setting the compensation of certain executive officers of the company. |
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Competent Authority
A term used within Directives produced by the European Commission to describe a body which has been designated by a member state of the European Union as being responsible for specified functions related to the securities market within the state. |
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Compliance
The state of being in accordance, within the exercice of one's activities, with the rules and regulations of the supervisory authorities. |
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Confidentiality and Proprietary Rights Agreement
An agreement in which an employee, customer or vendor agrees not to disclose confidential information to any third party or to use it in any context other than that of company business. |
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Contributed Capital
Equals the portion of a capital initially raised by a Private Equity fund that has been drawn down. |
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Conversion
The act of exchanging one form of security for another security usually of the same company, i.e. preferred stock for common stock, debt securities for equity, etc. |
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Conversion Parity
The relationship between the price of a convertible security and that of the underlying security (basis value) into which it can be converted. |
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Conversion Premium
The currency or percentage amount by which the price of a convertible security exceeds the current market value of the common stock into which it is convertible. |
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Conversion Ratio
Indicates the number of underlying securities that can be acquired upon exchange of a convertible security. |
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Convertible
Adjective to qualify a security that can be exchanged for an other type of security (usually common shares) at the option of the holder, the issuer, or both. |
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Convertible bond
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Convertible Debt
A debt obligation of a company which can be exchanged for stock under certain circumstances. |
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Convertible Preferred Stock
Preferred stock convertible into common stock. |
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Copyrights
The exclusive right to make and dispose of copies of a literary, musical, or artistic work. |
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Correlation
A linear relationship between two variables. |
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Co-sale Agreement
See Tag Along Agreement. |
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Covenants
An agreement by a company to perform or to abstain from certain activities during a certain time period. |
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Co-Venturing
Participation in a company of several investors where one of them assumes the role of Lead Investor. |
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Cram Down
Financial transaction where the entrepreneur must offer to investors a large amount of stock at a price below the last financing round (Down round). |
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Credit
A contractual agreement in which a borrower receives a product or a service and agrees to repay the lender at a specific later date. |
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Cross-collateralization
A collateral for one loan or obligation serving also as collateral for other loans or obligations. |
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CTA
[Commodity Trading Adviser] |
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Cumulative Dividend
Dividends which accumulate if not paid and which must be paid in full before other dividends are paid on the company's common stock ( Arrearage). |
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Cumulative Preferred Stock
A form of preferred stock which specifies that if one or more dividends is not paid, those dividends accumulate and must be paid in full before other dividends may be paid on the company's common stock. |
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Cumulative Voting
Allows a shareholder to cumulate his votes based on the number of shares owned multiplied by the number od directors to be elected, and vote them all for one nominee. |