Financial Terms Excerpts
Capital Gains
Capital gains refer to profits that arise when you sell a capital asset like real estate, stocks, and bonds. These proceeds must be above the purchase price to qualify as capital gains. A capital gain is also the resulting difference between a low buying price and a high selling price that leads to a financial gain for investors. The opposite [...]
Capital Gains Tax
Capital Gains Tax refers to as United States’ government assessed tax on capital gains. To better understand this idea, you must first grasp what capital gains actually are. Capital gains occur as individuals sell assets at a greater price than those at which they originally purchased them, known as the cost basis. Besides capital gains, there can also be capital [...]
Capital Inflow
Capital Inflow refers to money (in the form of investments) moving into a certain benefitting nation. The country which is the recipient of the inflow is best known as the host country. The source countries are the ones sending or investing the initial funds. Host nations often have a range of causes for attracting such capital inflows. Direct foreign investment [...]
Capital Loss
Capital Loss refers to a type of loss that companies or individuals experience as one of their capital assets decreases by value. This includes a real estate or investment asset. The loss only becomes realized when the asset itself sells for less than the price for which it was originally purchased. Another way of looking at these capital losses is [...]
Capital Markets
Capital markets refer to those marketplaces for the sales and purchase of both debt and equity financial issues. These markets move investments and savings back and forth between capital suppliers like institutional and retail investors to capital users. These are individual entrepreneurs, businesses and corporations, and governmental agencies. Economies do not function efficiently or successfully without such liquid markets of [...]
Capital Outflow
Capital Outflow is a phenomenon where financial assets and money move away from a given nation. All countries of the world consider this to be a negative action. It typically occurs as a result of economic and/or political instability or at least the perception of it. Such asset flight results from domestically and especially foreign-based investors choosing to sell their [...]
Capital Stock
A business’ capital stock is the up front capital that the founders of the firm invest in or put into the company. This capital stock also proves useful as security for a business’ creditors. This is because capital stock may not be taken out of the business to disadvantage the creditors in question. Such stock is separate from a business’ [...]
Carl Icahn
Carl Icahn is a billionaire corporate raider, investor, hedge fund manager, and philanthropist. He earned a vast fortune operating as one of the infamous corporate raiders of Wall Street back in the 1980s. He is consistently ranked in the top 100 richest men, and he secured the spot of 43 on the Forbes’ billionaire list for 2016. Carl Icahn was [...]
Case Shiller Index
[embed]https://youtu.be/BSzFgt-nNjw[/embed] The Case Shiller Index represents the collection of United States’ Home Price Indices. These were developed by economists Karl Case and noted Yale Professor Robert Shiller. The two men’s company Case Shiller Weiss, Inc. produced the statistics from 1991-2002. Allan Weiss their partner oversaw the production and release of the index on a regular basis. This index is a [...]
Cash Flow
Cash Flow is either an incoming revenue or outgoing expense stream that affects the value of any cash account over time. Inflows of cash, or positive cash flows, typically result from one of three possible activities, including operations, investing, or financing for businesses or individuals. Individuals are also able to realize positive cash flows from gifts or donations. Negative cash [...]
Cash Flow Quadrant
The cash flow quadrant is a diagram that shows four types of individuals involved in a business. These four people make up the entire business world. The four quadrants are E, S, B, and I. The E quadrant stands for employees. Employees have the same core values in general. This is security. When any employee sits down with a manager [...]
Cash Flow Statement (CFS)
The Cash Flow Statement (CFS) proves to be one of three critical components in any corporation’s financial reports. The other two are income statements and balance sheets. From 1987, the SEC Securities Exchange Commission has mandated that such cash flow statements be included with all corporate financial reports. This statement details the quantities of cash and cash equivalents that come [...]
Cash Management
Cash management refers to the corporate functions of gathering, handling, and short term investing cash. This represents a critical part of making certain a firm is financially viable and stays solvent. In many cases, the business managers of a company or corporate treasurers of a large corporation will handle the aggregate cash management responsibilities. This means they will be responsible [...]
Cash On Cash Return (CCR)
Cash on cash return, also known by its acronym CCR, is an investing term. It describes a ratio of the yearly cash flow before taxes against the total sum of cash invested. This cash on cash return is expressed as a percentage. Cash on cash return is mostly utilized to analyze any income generating asset’s actual cash flow situation. This [...]
Cash Operating Cost
Cash Operating Cost refers to a cash flow statement which effectively follows all cash types of business expenditures. It is in the first section of a cash flow statement, the operating activities, that keeps all relevant and pertinent information regarding the cash operating costs. Such expenses are derived from the firm’s information on financial accounting. It does not matter if [...]
Cash Reserves
Cash reserves refer to money which an individual person, a company, or a corporation saves in order to be ready to cover any emergency funding or short term requirements. They can also be utilized to refer to a kind of extremely liquid, short term investment which usually garners a poor rate of return (under three percent in a year). An [...]
Cash Savings Account
A cash savings account is a place that you can park your cash and gain interest on it. Effective short term savings accounts are ones that permit you to meet your needs in four important areas. The access to the funds is critical. Cash savings accounts should allow you to withdraw funds from the account whenever you need. This should [...]
Cashless Society
A Cashless Society refers to an economic environment where money is not used in physical coins and notes any longer to carry out financial transactions of any kind. In its place, a digital information transfer, represented by electronic forms of money such as that in bank account, moves back and forth between the parties of the transaction. In the distant [...]
CBOE Volatility Index (VIX)
The CBOE Volatility Index (VIX) refers to the VIX ticker symbol on the CBOE Chicago Board Options Exchange. This is the famed volatility index that displays the expectations of the market for future volatility in the markets over the coming 30 days. This number comes from utilizing the implied volatilities from a huge selection of the index options on the [...]
Central Bank
Central banks are national monetary authorities or reserve banks that are given the unique privilege and responsibility of loaning a government its currency. Central banks have many of the same characteristics that traditional banks do, such as charging set rates of interest on loans that they make to borrowers like the government of the country that they represent, or alternatively [...]
Certificate of Deposit (CD)
A Certificate of Deposit refers to a kind of savings vehicle which generally provides greater returns for money invested than the typical savings accounts do. There is very little risk in such an account. They also come without monthly fees. Besides this, these CDs prove to be significantly different from the age old savings accounts for several reasons. Such a [...]
Certificate of Occupancy
A certificate of occupancy is a local government issued document. These papers give permission for tenants or residents to occupy a new building or even a residence. The reason that local governments mandate such certificates is because of building codes. The certificate proves that a building inspector has certified the building to be safe so that it can be occupied. [...]
Certificate of Title
A certificate of title represents a document which states who the owners or owner of real estate or personal property actually are. It is issued by a municipal or state government. This certificate gives evidence of any ownership rights. In general a title insurance company will issue a certificate of title opinion on a house or piece of property. This [...]
Certified Public Accountant (CPA)
CPA’s, or certified public accountants, are accountants who have taken and successfully completed a series of demanding exams that are given by the American Institute of Certified Public Accountants. Many states also have their own state level exams that have to be passed along with the national one. CPA’a are accountants in every sense of the word, but not every [...]
Cession Deed
A cession deed is used to give up property rights to a government authority. It is possible for individuals, companies, or organizations to sign a cession deed with a state or the federal government in the U.S. Cession deeds have generally been utilized between great imperial powers like the United States or Great Britain and smaller independent entities such as [...]
CFA Institute
The CFA Institute stands for the Chartered Financial Analyst institute. This global organization was formerly called the AIMR Association for Investment Management and Research. This institute is made up of over 70,000 individual members (from 137 different member societies located in 60 countries) who have the CFA Chartered Financial Analyst designation or who instead agree to be bound up by [...]
Chain of Title
A chain of title refers to the consecutive historical transfers in a title on a particular piece of real estate property. These chains start with the current owner of the property and trace their way back to the property’s first owner. Reconstructing such a chain can be extremely important when a lender needs complete ownership documentation. Such title documents are [...]
Chapter 11 Bankruptcy
Chapter 11 Bankruptcy proves to be a specific type of bankruptcy. This kind has to do with the business assets, debts, and affairs being reorganized. The business reorganization filing was named for the Section 11 of the United States’ Bankruptcy Code. Corporations commonly file it that need some time to rearrange the terms of their debts and their business operations. [...]
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is a form of protection from creditors. Unlike Chapter 13 bankruptcy, it does not have any repayment plan. In the Chapter 7 a bankruptcy trustee determines what eligible assets the debtor individual or company has. The trustee then collects these available assets, sells them, and distributes proceeds to the creditors against their debts. This is all done [...]
Charge Off
A charge off refers to an expense item found on a corporation’s income statement. This could be one of two things. It might be connected with a debt that the reporting firm has decided is not realistically collectable. They would then write this off from the corporate balance sheet. It might also be a likely one time only expense which [...]