Glossary C

Glossary C

Callable features

The ability of a bond issuer to redeem the bond before its maturity date.

  • Structured Products Vs. Derivatives: Complex Investments (Demystified)
  • Call option

    Financial contract that gives the holder the right, but not the obligation, to buy an underlying asset at a predetermined price.

  • Private Equity Vs. Venture Capital: Investment (Comparison)
  • Call to action

    Marketing message that encourages a specific action from the audience.

  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Candlestick charts

    Graphical representation of stock price movements over time, used in technical analysis.

  • Primary Vs. Secondary Markets: Investment Banking (Defined)
  • Capital adequacy ratio (CAR)

    Ratio of a bank’s capital to its risk-weighted assets, used to assess its financial stability.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Capital allocation

    Process of distributing financial resources among different investment opportunities.

  • Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
  • Capital appreciation

    Increase in the value of an asset over time.

  • Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
  • Capital commitments

    Agreements to invest a certain amount of capital in a project or company.

  • Private Equity Vs. Venture Capital: Investment (Comparison)
  • Capital Market Operations

    Activities involved in capital market transactions.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Capital Markets

    Financial markets for buying and selling securities.

  • Asset Management Vs. Investment Banking: Roles (Distinct)
  • Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Equity Vs. Debt Financing: Investment Banking (Explained)
  • Primary Vs. Secondary Markets: Investment Banking (Defined)
  • Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
  • Capital raising

    Process of obtaining funding for a company.

  • Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Equity Vs. Debt Financing: Investment Banking (Explained)
  • Primary Vs. Secondary Markets: Investment Banking (Defined)
  • Primary Issuance Vs. Secondary Trading: Market Phases (Defined)
  • Capital Raising Process

    Steps taken to raise capital for a company.

  • Primary Vs. Secondary Markets: Investment Banking (Defined)
  • Capital raising strategies

    Methods used to raise capital for a company.

  • Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
  • Capital structure

    Mix of debt and equity financing used by a company.

  • Equity Vs. Debt Financing: Investment Banking (Explained)
  • Private Equity Vs. Venture Capital: Investment (Comparison)
  • Capital structure optimization

    Maximizing the balance between debt and equity financing.

  • Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
  • Cap table

    Table that shows the ownership structure of a company, including the percentage of ownership held by each shareholder.

  • Private Equity Vs. Venture Capital: Investment (Comparison)
  • Carry or performance fee

    Fee charged by investment managers based on performance.

  • Private Equity Vs. Venture Capital: Investment (Comparison)
  • Cartel behavior

    Illegal collusion among competitors to control prices or markets.

  • Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
  • Cash flow analysis

    The examination of a company’s inflows and outflows of cash to assess its financial health.

  • Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
  • Certificate of deposit (CD)

    Time deposit with a fixed interest rate and maturity date.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Change management

    Process of managing organizational change.

  • Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
  • Charitable giving

    Donations to charitable organizations.

  • Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
  • Circuit Breakers

    Mechanisms that halt trading in the event of extreme market volatility.

  • Primary Issuance Vs. Secondary Trading: Market Phases (Defined)
  • Client engagement

    Interaction with clients to understand their needs and provide solutions.

  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Client Relations

    Management of relationships with clients.

  • Asset Management Vs. Investment Banking: Roles (Distinct)
  • Collateral

    Asset pledged as security for a loan.

  • Equity Vs. Debt Financing: Investment Banking (Explained)
  • Collateralization

    The process of pledging assets as security for a loan.

  • Structured Products Vs. Derivatives: Complex Investments (Demystified)
  • Collateralized Debt Obligations (CDOs)

    Securities backed by a pool of debt obligations.

  • Equity Vs. Debt Financing: Investment Banking (Explained)
  • Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
  • Structured Products Vs. Derivatives: Complex Investments (Demystified)
  • Collateral management

    Process of managing and monitoring collateral assets.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Collusion

    Secret agreement between parties to deceive or defraud others.

  • Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
  • Commodities

    Raw materials or primary agricultural products that can be bought and sold.

  • Structured Products Vs. Derivatives: Complex Investments (Demystified)
  • Common stock

    Equity ownership in a company.

  • Equity Vs. Debt Financing: Investment Banking (Explained)
  • Communication skills

    Ability to convey information clearly and effectively.

  • Asset Management Vs. Investment Banking: Roles (Distinct)
  • Communication strategy

    Plan for effective communication with stakeholders.

  • Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
  • Competitive analysis

    Evaluation of competitors’ strengths and weaknesses.

  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Competitive landscape

    Analysis of market competition and industry trends.

  • Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
  • Complex investments

    Financial instruments with intricate structures and features.

  • Structured Products Vs. Derivatives: Complex Investments (Demystified)
  • Complexity of investments

    The level of difficulty in understanding and valuing a particular investment.

  • Structured Products Vs. Derivatives: Complex Investments (Demystified)
  • Compliance monitoring

    Process of ensuring adherence to regulatory requirements and internal policies.

  • Asset Management Vs. Investment Banking: Roles (Distinct)
  • Compliance verification

    The process of ensuring that a company is following applicable laws and regulations.

  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Concentration risk

    The risk of loss due to a lack of diversification in a portfolio.

  • Private Equity Vs. Venture Capital: Investment (Comparison)
  • Confidentiality agreements

    Legal agreements that prohibit the disclosure of confidential information.

  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
  • Conflict resolution

    The process of resolving disputes between parties.

  • Asset Management Vs. Investment Banking: Roles (Distinct)
  • Conflicts of interest in credit rating agencies

    Situations where a credit rating agency’s interests may conflict with its duty to provide accurate ratings.

  • Equity Vs. Debt Financing: Investment Banking (Explained)
  • Conglomerate merger

    A merger between companies in unrelated industries.

  • Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
  • Consolidation

    The process of combining two or more companies into a single entity.

  • Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
  • Consumer behavior

    The actions and decisions of individuals when purchasing goods or services.

  • Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
  • Consumer Financial Protection Bureau (CFPB)

    A U.S. government agency that regulates financial products and services offered to consumers.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Contract review and negotiation

    The process of reviewing and negotiating the terms of a legal agreement.

  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Control of the company

    The ability to make decisions that affect a company’s operations and direction.

  • Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
  • Control Premiums

    The additional value paid for a controlling stake in a company.

  • Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
  • Convertible bonds

    Bonds that can be converted into equity at a later date.

  • Equity Vs. Debt Financing: Investment Banking (Explained)
  • Convertible notes

    Debt securities that can be converted into equity at a later date.

  • Private Equity Vs. Venture Capital: Investment (Comparison)
  • Corporate actions

    Decisions made by a company’s management that affect its shareholders, such as stock splits or dividend payments.

  • Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
  • Corporate bond market

    The market for buying and selling debt securities issued by corporations.

  • Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
  • Corporate debt instruments

    Bonds or other debt securities issued by corporations to raise capital.

  • Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
  • Corporate debt securities

    Bonds or other debt instruments issued by corporations to raise capital.

  • Equity Vs. Debt Financing: Investment Banking (Explained)
  • Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
  • Corporate finance

    The management of a company’s financial resources, including investments, capital structure, and risk management.

  • Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
  • Leveraged Buyout Vs. Management Buyout: Deal Types (Explained)
  • Primary Vs. Secondary Markets: Investment Banking (Defined)
  • Corporate Finance Advisory

    The provision of financial advice and services to corporations, including mergers and acquisitions, capital raising, and financial restructuring.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Corporate finance departments of large corporations

    The teams responsible for managing a company’s financial activities, including investments, capital structure, and risk management.

  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Corporate finance strategy

    The plan for managing a company’s financial resources to achieve its goals.

  • Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
  • Corporate governance

    The system of rules, practices, and processes by which a company is directed and controlled.

  • Primary Vs. Secondary Markets: Investment Banking (Defined)
  • Corporate governance examination

    The evaluation of a company’s management and decision-making processes to ensure they are ethical and effective.

  • Buy Side Vs. Sell Side: Investment Banking (Clarified)
  • Corporate restructuring

    The process of reorganizing a company’s structure, operations, or finances to improve its performance.

  • Bulge Bracket Vs. Boutique: Understanding Bank Types (Decoded)
  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Equity Vs. Debt Financing: Investment Banking (Explained)
  • Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
  • Correlation

    A statistical measure that indicates the degree to which two variables are related.

  • Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
  • Correlation and covariance analysis

    Statistical methods used to measure the relationship between two variables.

  • Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
  • Correlation trades

    Investment strategies that take advantage of the relationship between different financial assets.

  • Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
  • Cost of capital

    The cost of financing a business, including both debt and equity.

  • Equity Vs. Debt Financing: Investment Banking (Explained)
  • Cost of Debt

    The cost of borrowing money, typically expressed as an interest rate.

  • Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
  • Counterparty credit limits

    Limits set by banks on the amount of credit extended to a counterparty.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Counterparty credit risk

    The risk of financial loss due to default by a counterparty in a credit transaction.

  • Private Equity Vs. Venture Capital: Investment (Comparison)
  • Counterparty risk

    The risk of financial loss due to default by a counterparty in a financial transaction.

  • Structured Products Vs. Derivatives: Complex Investments (Demystified)
  • Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
  • Asset Management Vs. Investment Banking: Roles (Distinct)
  • Covenant restrictions

    Provisions in loan agreements that limit the actions of borrowers to protect lenders.

  • Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
  • Credit analysis

    The process of evaluating the creditworthiness of a borrower or issuer.

  • Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
  • Credit Default Swaps

    Financial instruments used to transfer credit risk from one party to another.

  • Structured Products Vs. Derivatives: Complex Investments (Demystified)
  • Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
  • Credit default swaps (CDS) and credit ratings

    Financial instruments used to transfer credit risk, often based on credit ratings.

  • Equity Vs. Debt Financing: Investment Banking (Explained)
  • Structured Products Vs. Derivatives: Complex Investments (Demystified)
  • Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
  • Credit Extension Services

    Services provided by banks to extend credit to customers.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Credit-linked notes

    Debt securities whose value is linked to the creditworthiness of an underlying entity.

  • Structured Products Vs. Derivatives: Complex Investments (Demystified)
  • Credit rating

    A measure of the creditworthiness of a borrower, assigned by a credit rating agency.

  • Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
  • Asset Management Vs. Investment Banking: Roles (Distinct)
  • Equity Vs. Debt Financing: Investment Banking (Explained)
  • Structured Products Vs. Derivatives: Complex Investments (Demystified)
  • Credit rating agencies

    Companies that assess the creditworthiness of borrowers and issue credit ratings.

  • Equity Vs. Debt Financing: Investment Banking (Explained)
  • Structured Products Vs. Derivatives: Complex Investments (Demystified)
  • Credit risk

    The risk of financial loss due to default on a loan or other credit obligation.

  • Asset Management Vs. Investment Banking: Roles (Distinct)
  • Prop Trading Vs. Flow Trading: Distinct Strategies (Unveiled)
  • Structured Products Vs. Derivatives: Complex Investments (Demystified)
  • Credit risk assessment

    An evaluation of the risk of default on a loan or other credit obligation.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Credit risk exposure

    The potential loss a lender may face if a borrower defaults on a loan.

  • Structured Products Vs. Derivatives: Complex Investments (Demystified)
  • Creditworthiness

    A measure of a borrower’s ability to repay a loan.

  • Equity Vs. Debt Financing: Investment Banking (Explained)
  • Creditworthiness assessment

    The evaluation of a borrower’s creditworthiness based on their financial history and other factors.

  • Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
  • Creditworthiness evaluation

    The process of assessing a borrower’s ability to repay their debt.

  • Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
  • Creditworthiness of a company or government entity

    The ability of a borrower to repay their debt.

  • Investment Grade Vs. High Yield Bonds: Credit Ratings (Explained)
  • Cross-selling

    The practice of selling additional products or services to existing customers.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Cross-selling opportunities

    Opportunities to sell additional products or services to existing customers.

  • Asset Management Vs. Investment Banking: Roles (Distinct)
  • Cultural compatibility assessment

    An evaluation of the compatibility of different cultures in a business or organization.

  • Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
  • Cultural integration

    The process of merging different cultures into a cohesive whole.

  • Mergers Vs. Acquisitions: Demystifying Corporate Actions (Guide)
  • Cultural sensitivity

    The ability to understand and respect cultural differences and adapt behavior accordingly.

  • Asset Management Vs. Investment Banking: Roles (Distinct)
  • Currencies

    Forms of money used in different countries.

  • Structured Products Vs. Derivatives: Complex Investments (Demystified)
  • Currency exchange rate risks

    The risk of financial loss due to fluctuations in exchange rates between currencies.

  • Private Equity Vs. Venture Capital: Investment (Comparison)
  • Current accounts

    Bank accounts that allow customers to deposit and withdraw money on demand.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Custody services

    Services provided by banks to hold and safeguard assets on behalf of clients.

  • Asset Management Vs. Investment Banking: Roles (Distinct)
  • Customer feedback mechanisms

    Methods used to collect feedback from customers, such as surveys, focus groups, and social media monitoring.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Customer Relationship Management

    A strategy for managing interactions with customers to improve relationships and increase customer loyalty.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Customer satisfaction

    The degree to which a customer is satisfied with a product or service.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Customer satisfaction surveys

    Surveys conducted to measure the level of satisfaction of customers with a product or service.

  • Underwriting Vs. Advisory: Investment Banking Services (Unpacked)
  • Customer segmentation

    Dividing customers into groups based on shared characteristics to better understand their needs and preferences.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Customer service

    Assistance provided to customers before, during, and after a purchase or transaction.

  • Asset Management Vs. Investment Banking: Roles (Distinct)
  • Customer service excellence

    Providing exceptional service to customers to build loyalty and trust.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)
  • Cybersecurity measures

    Steps taken to protect computer systems and networks from unauthorized access or attacks.

  • Commercial Vs. Investment Banking: Functions and Features (Discussed)