Super Finance Glossary

Finance

Over 10,000 financial glossary terms...

Browse by Letter: A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Or Enter Search Term: By Author:
 Search Tips
If you want to refine these results, please use the search box.
Hint: Not sure how the word is listed? Just enter the first few letters.

Browsing by the letter "C"

Displaying next 740 results of 972
Coupon (Coupon Rate)
Definition: A fixed dollar amount of interest payable per annum, stated as a percentage of principal value, usually payable in semiannual installments.
Coupon Bond
Definition: A bond featuring coupons that must be presented to the issuer in order to receive interest payments.
Coupon Equivalent Yield
Definition: True interest cost expressed on the basis of a 365-day year.
Coupon Pass
Definition: Canvassing by the desk of primary dealers to determine the inventory and maturities of their Treasury securities. The desk then decides whether to buy or sell certain issues (coupons) in order to add or withdraw reserves.
Coupon Payments
Definition: A bond's interest payments.
Coupon Rate
Definition: In bonds, notes, or other fixed income securities, the stated percentage rate of interest, usually paid twice a year.
Covariance
Definition: A statistical measure of the degree to which random variables move together. A positive covariance implies that one variable is above (below) its mean value when the other variable is above (below) its mean value.
Covenant
Definition: An agreed action to be undertaken (Positive) or not done (Negative). A breach of a covenant is a default.
Cover
Definition: The amount above UNITY of a debt service ratio.
Coverage Initiated
Definition: Usually refers to the fact that analysts begin following a particular security. This usually happens when there is enough trading in it to warrant attention by the investment community.
Coverage Ratios
Definition: Ratios used to test the adequacy of cash flows generated through earnings for purposes of meeting debt and lease obligations, including the interest coverage ratio and the fixed-charge coverage ratio.
Covered
Definition: A written option is considered to be covered if the writer also has an opposing market position on a share-for-share basis in the underlying security. That is, a short call is covered if the underlying stock is owned, and a short put is covered (for margin purposes) if the underlying stock is also short in the account. In addition, a short call is covered if the account is also long another call on the same security, with a striking price equal to or less than the striking price of the short call. A short put is covered if there is also a long put in the account with a striking price equal to or greater than the striking price of the short put.
Covered Call
Definition: A short call option position in which the writer owns the number of shares of the underlying stock represented by the option contracts. Covered calls generally limit the risk the writer takes because the stock does not have to be bought at the market price, if the holder of that option decides to exercise it.
Covered Call Writing Strategy
Definition: A strategy that involves writing a call option on securities that the investor owns. See: Covered or hedge option strategies.
Covered Foreign Currency Loan
Definition: A loan denominated in a currency other than that of the borrower's home country, for which repayment terms are prearranged through the use of a forward currency contract.
Covered Interest Arbitrage
Definition: Occurs when a portfolio manager invests dollars in an instrument denominated in a foreign currency and hedges the resulting foreign exchange risk by selling the proceeds of the investment forward for dollars.
Covered Interest Rate Parity
Definition: The principle that the yields from interest-bearing foreign and domestic investments should be equal when the currency market is used to predetermine the domestic currency payoff from a foreign investment.
Covered Option
Definition: Option position that is offset by an equal and opposite position in the underlying security. Antithesis of naked option.
Previous
Next