Terms Starting with C

Capital refers to the financial assets or resources that individuals or businesses possess, which can be used to fund operations, investments, or future growth.

The Capital Asset Pricing Model (CAPM) is a financial model that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Capital expenditure (CapEx) refers to funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.

Capitalism is an economic system where private individuals rather than the state own and control property and businesses, operating them for profit.

The Central Limit Theorem (CLT) is a statistical principle that states that the distribution of sample means approximates a normal distribution as the sample size becomes larger, regardless of the population's distribution.

The Chartered Financial Analyst (CFA) designation is a professional credential offered by the CFA Institute to investment and financial professionals who have passed three levels of exams covering areas such as investment management, financial analysis, stocks, bonds, and derivatives.

The Chief Executive Officer (CEO) is the highest-ranking executive in a company, responsible for making major corporate decisions, managing the overall operations and resources of the company, and acting as the main point of communication between the board of directors and corporate operations.

A Code of Ethics is a set of guidelines designed to help professionals conduct business honestly and with integrity.

The Coefficient of Variation (CV) is a statistical measure that quantifies the relative variability of a data set, expressed as a ratio of the standard deviation to the mean.

Collateral refers to assets that a borrower offers to a lender to secure a loan, which the lender can seize if the borrower fails to repay the loan.

A command economy is an economic system where the government has full control over the production and distribution of goods and services.

Comparative advantage is an economic theory that describes how entities can gain and sustain economic efficiency by specializing in the production of goods and services for which they have the lowest opportunity cost.

Compound Annual Growth Rate (CAGR) is a measure used to express the mean annual growth rate of an investment over a specified time period longer than one year.

Interest calculated on both the principal amount and previously earned interest.

Conflict theory is a sociological perspective that emphasizes the role of competition and conflict between social groups over resources and power, influencing economic structures and market behaviors.

The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Contribution margin is a measure of a company's profitability, calculated as sales revenue minus variable costs.

The correlation coefficient is a statistical measure that calculates the strength and direction of a linear relationship between two variables.

Correlation in finance measures the degree to which two securities move in relation to each other, indicating how investments might behave under similar market conditions.

Cost of Goods Sold (COGS) refers to the direct costs attributable to the production of the goods sold by a company. This includes the cost of the materials and labor directly used to create the product.

Creative destruction refers to the process where new innovations lead to the demise of older technologies and economic structures, fostering new industries and economic growth.

A Credit Default Swap (CDS) is a financial derivative that allows an investor to swap or offset their credit risk with that of another investor.

A three-digit number that represents your creditworthiness based on your credit history.

The current ratio is a liquidity ratio that measures a company's ability to pay off its short-term liabilities with its short-term assets.

Customer service in finance refers to the support and assistance financial institutions provide to their clients to manage their accounts, resolve issues, and enhance their overall banking experience.