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247a2cfa_t_02__C__Flashcards___Cram_com__Call
Valuation measures and other factors related to share price or the trading characteristics of the shares, such as earnings yield, dividend yield, and book-to- market value. [Call]
Company share-related factors
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A company that has similar business risk; usually in the same industry and preferably with a single line of business. [Call]
Comparable company
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A company’s plans for responding to the threats and opportunities presented by the external environment. [Call]
Competitive strategy
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
In probability, with reference to an event S, the event that S does not occur; in economics, a good that is used in conjunction with another good. [Call]
Complement
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Informally, markets in which the variety of distinct securities traded is so broad that any desired payoff in a future state-of-the-world is achievable. [Call]
Complete markets
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A method of revenue recognition in which the company does not recognize any revenue until the contract is completed; used particularly in long-term construction contracts. [Call]
Completed contract
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The rate of return required by suppliers of capital for an individual source of a company’s funding, such as debt or equity. [Call]
Component cost of capital
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The process of accumulating interest on interest. [Call]
Compounding
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The change in equity of a business enterprise during a period from nonowner sources; includes all changes in equity during a period except those resulting from investments by owners and distributions to owners; comprehensive income equals net income plus other comprehensive income. [Call]
Comprehensive income
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The expected value of a stated event given that another event has occurred. [Call]
Conditional expected value
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Heteroskedasticity in the error variance that is correlated with the values of the independent variable(s) in the regression. [Call]
Conditional heteroskedasticity
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The probability of an event given (conditioned on) another event. [Call]
Conditional probability
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The variance of one variable, given the out- come of another. [Call]
Conditional variances
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A range that has a given probability that it will contain the population parameter it is intended to estimate. [Call]
Confidence interval
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A merger involving companies that are in unrelated businesses. [Call]
Conglomerate merger
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A desirable property of estimators; a consistent estimator is one for which the probability of estimates close to the value of the population parameter increases as sample size increases. [Call]
Consistency
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
With reference to estimators, describes an estimator for which the probability of estimates close to the value of the population parameter increases as sample size increases. [Call]
Consistent
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The combining of the results of operations of subsidiaries with the parent company to present financial statements as if they were a single economic unit. The asset, liabilities, revenues and expenses of the subsidiaries are combined with those of the parent company, eliminating inter- company transactions. [Call]
Consolidation
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A swap in which the floating rate is the rate on a security known as a constant maturity treasury or CMT security. [Call]
Constant maturity swap or CMT swap
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A hypothetical U.S. Treasury note with a constant maturity. A CMT exists for various years in the range of 2 to 10. [Call]
Constant maturity treasury or CMT
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Features of a firm’s technology that lead to constant long-run average cost as output increases. When constant returns to scale are present, the LRAC curve is horizontal. [Call]
Constant returns to scale
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
With respect to an index, the individual securities within an index. [Call]
Constituent securities
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
An index that measures the average of the prices paid by urban consumers for a fixed “basket” of the consumer goods and services. [Call]
Consumer Price Index (CPI)
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The value (or marginal benefit) of a good minus the price paid for it, summed over the quantity bought. [Call]
Consumer surplus
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A situation in a futures market where the current futures price is greater than the current spot price for the underlying asset. [Call]
Contango
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A market in which firms can enter and leave so easily that firms in the market face competition from potential entrants. [Call]
Contestable market
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Derivatives in which the payoffs occur if a specific event occurs; generally referred to as options. [Call]
Contingent claims
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A type of pattern used in technical analysis to predict the resumption of a market trend that was in place prior to the formation of a pattern. [Call]
Continuation patterns
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A market where stocks are priced and traded continuously by an auction process or by dealers when the market is open. [Call]
Continuous market
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A random variable for which the range of possible outcomes is the real line (all real numbers between -∞ and +∞ or some subset of the real line). [Call]
Continuous random variable
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Time thought of as advancing in extremely small increments. [Call]
Continuous time
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A market in which trades can be arranged and executed any time the market is open. [Call]
Continuous trading market
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The natural logarithm of 1 plus the holding period return, or equivalently, the natural logarithm of the ending price over the beginning price. [Call]
Continuously compounded return
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
An account that offsets another account. [Call]
Contra account
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The amount available for fixed costs and profit after paying variable costs; revenue minus variable costs. [Call]
Contribution margin
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
An investment where the investor exerts control over the investee, typically by having a greater than 50 percent ownership in the investee. [Call]
Controlling interest
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The nonmonetary return offered by an asset when the asset is in short supply, often associated with assets with seasonal production processes. [Call]
Convenience yield
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A conventional cash flow pattern is one with an initial outflow followed by a series of inflows. [Call]
Conventional cash flow
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
In technical analysis, a term that describes the case when an indicator moves in the same manner as the security being analyzed. [Call]
Convergence
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
An adjustment used to facilitate delivery on bond futures contracts in which any of a number of bonds with different characteristics are eligible for delivery. [Call]
Conversion factor
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Debt with the added feature that the bond- holder has the option to exchange the debt for equity at prespecified terms. [Call]
Convertible debt
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A type of equity security that entitles shareholders to convert their shares into a specified number of common shares. [Call]
Convertible preference shares
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The outcome of a game in which the players make and share the monopoly profit. [Call]
Cooperative equilibrium
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A measure of inflation based on the core CPI—the CPI excluding food and fuel. [Call]
Core inflation rate
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The system of principles, policies, procedures, and clearly defined responsibilities and accountabilities used by stakeholders to overcome the conflicts of interest inherent in the corporate form. [Call]
Corporate governance
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A person or organization seeking to profit by acquiring a company and reselling it, or seeking to profit from the takeover attempt itself (e.g. greenmail). [Call]
Corporate raider
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A legal entity with rights similar to those of a person. The chief officers, executives, or top managers act as agents for the firm and are legally entitled to authorize corporate activities and to enter into contracts on behalf of the business. [Call]
Corporation
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A number between +1 and -1 that measures the co- movement (linear association) between two random variables. [Call]
Correlation
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The analysis of the strength of the linear relationship between two data series. [Call]
Correlation analysis
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A number between –1 and +1 that measures the consistency or tendency for two investments to act in a similar way. It is used to determine the effect on portfolio risk when two assets are combined. [Call]
Correlation coefficient
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The periodic investment of a fixed amount of money. [Call]
Cost averaging
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The rate of return that suppliers of capital require as compensation for their contribution of capital. [Call]
Cost of capital
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The cost associated with holding some asset, including financing, storage, and insurance costs. Any yield received on the asset is treated as a negative carrying cost. [Call]
Cost of carry
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A model for pricing futures contracts in which the futures price is determined by adding the cost of carry to the spot price. [Call]
Cost of carry model
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The cost of debt financing to a company, such as when it issues a bond or takes out a bank loan. [Call]
Cost of debt
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
For a given period, equal to beginning inventory minus ending inventory plus the cost of goods acquired or produced during the period. [Call]
Cost of goods sold
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The cost to a company of issuing preferred stock; the dividend yield that a company must commit to pay preferred stockholders. [Call]
Cost of preferred stock
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A method of revenue recognition in which the seller does not report any profit until the cash amounts paid by the buyer—including principal and interest on any financing from the seller—are greater than all the seller’s costs for the merchandise sold. [Call]
Cost recovery method
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The mix of a company’s variable costs and fixed costs. [Call]
Cost structure
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
An inflation that results from an initial increase in costs. [Call]
Cost-push inflation
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The President’s council whose main work is to monitor the economy and keep the President and the public well informed about the current state of the economy and the best available forecasts of where it is heading. [Call]
Council of Economic Advisers
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The risk that the other party to a contract will fail to honor the terms of the contract. [Call]
Counterparty risk
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The interest rate promised in a contract; this is the rate used to calculate the periodic interest payments. [Call]
Coupon rate
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A measure of the co-movement (linear association) between two random variables. [Call]
Covariance
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A matrix or square array whose entries are covariances; also known as a variance–covariance matrix. [Call]
Covariance matrix
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Describes a time series when its expected value and variance are constant and finite in all periods and when its covariance with itself for a fixed number of periods in the past or future is constant and finite in all periods. [Call]
Covariance stationary
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
An option strategy involving the holding of an asset and sale of a call on the asset. [Call]
Covered call
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A transaction executed in the foreign exchange market in which a currency is purchased (sold) and a forward contract is sold (purchased) to lock in the exchange rate for future delivery of the currency. This transaction should earn the risk-free rate of the investor’s home country. [Call]
Covered interest arbitrage
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
With respect to double-entry accounting, a credit records increases in liability, owners’ equity, and revenue accounts or decreases in asset accounts; with respect to borrowing, the willingness and ability of the borrower to make promised payments on the borrowing. [Call]
Credit
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The evaluation of credit risk; the evaluation of the creditworthiness of a borrower or counterparty. [Call]
Credit analysis
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A contract in which one party has the right to claim a payment from another party in the event that a specific credit event occurs over the life of the contract. [Call]
Credit derivatives
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The risk of loss caused by a counter- party’s or debtor’s failure to make a promised payment. [Call]
Credit risk or default risk
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A statistical model used to classify borrowers according to creditworthiness. [Call]
Credit scoring model
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
An option on the yield spread on a bond. [Call]
Credit spread option
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A type of swap transaction used as a credit derivative in which one party makes periodic payments to the other and receives the promise of a payoff if a third party defaults. [Call]
Credit swap
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A variation of VAR that reflects credit risk. [Call]
Credit VAR, Default VAR, or Credit at Risk
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Fixed-income securities in which the holder of the security has the right to withhold payment of the full amount due at maturity if a credit event occurs. [Call]
Credit-linked notes
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The perceived ability of the borrower to pay what is owed on the borrowing in a timely manner; it represents the ability of a company to withstand adverse impacts on its cash flows. [Call]
Credit-worthiness
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The responsiveness of the demand for a good to a change in the price of a substitute or complement, other things remaining the same. It is calculated as the percentage change in the quantity demanded of the good divided by the percentage change in the price of the substitute or complement. [Call]
Cross elasticity of demand
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Trading systems that match buyers and sellers who are willing to trade at prices obtained from other markets. [Call]
Crossing networks
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Netting the market values of all contracts, not just derivatives, between parties. [Call]
Cross-product netting
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Analysis that involves comparisons across individuals in a group over a given time period or at a given point in time. [Call]
Cross-sectional analysis
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Observations over individual units at a point in time, as opposed to time-series data. [Call]
Cross-sectional data
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The tendency for a government budget deficit to decrease investment. [Call]
Crowding-out effect
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A function giving the probability that a random variable is less than or equal to a specified value. [Call]
Cumulative distribution function
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Preference shares for which any dividends that are not paid accrue and must be paid in full before dividends on common shares can be paid. [Call]
Cumulative preference shares
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
For data grouped into intervals, the fraction of total observations that are less than the value of the upper limit of a stated interval. [Call]
Cumulative relative frequency
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Voting that allows shareholders to direct their total voting rights to specific candidates, as opposed to having to allocate their voting rights evenly among all candidates. [Call]
Cumulative voting
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The notes and coins held by individuals and businesses. [Call]
Currency
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The ratio of currency to deposits. [Call]
Currency drain ratio
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A forward contract in which the underlying is a foreign currency. [Call]
Currency forward
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
An option that allows the holder to buy (if a call) or sell (if a put) an underlying currency at a fixed exercise rate, expressed as an exchange rate. [Call]
Currency option
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A swap in which each party makes interest payments to the other in different currencies. [Call]
Currency swap
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Assets that are expected to be consumed or converted into cash in the near future, typically one year or less. [Call]
Current assets, or liquid assets
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
With reference to assets, the amount of cash or cash equivalents that would have to be paid to buy the same or an equivalent asset today; with reference to liabilities, the undiscounted amount of cash or cash equivalents that would be required to settle the obligation today. [Call]
Current cost
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
The risk associated with the possibility that a payment currently due will not be made. [Call]
Current credit risk
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
For accounting purposes, the spot exchange rate on the balance sheet date. [Call]
Current exchange rate
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Short-term obligations, such as accounts payable, wages payable, or accrued liabilities, that are expected to be settled in the near future, typically one year or less. [Call]
Current liabilities
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
Approach to translating foreign currency financial statements for consolidation in which all assets and liabilities are translated at the current exchange rate. The current rate method is the prevalent method of translation. [Call]
Current rate method
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
Call
http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json
247a2cfa_t_02__C__Flashcards___Cram_com__Call
A liquidity ratio calculated as current assets divided by current liabilities. [Call]
Current ratio
[]
CFA Level I - 2011 - Glossary Part 02 (C) Flashcards - Cram.com
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http://www.cram.com/flashcards/cfa-level-i-2011-glossary-part-02-c-1689096
42/1438042989018.40_20150728002309-00341-ip-10-236-191-2_387422488_0.json