Stock market terms starting with C

Confirmation Bias Market Psychology & Behavioural Finance qualitative The tendency to seek and favour information that supports an existing view while discounting information that contradicts it. Test: evidence supporting the held position is sought and accepted readily, while contrary evidence is scrutinised or dismissed

Consensus Estimate Fundamental Analysis & Valuation ₹ The average of analysts' forecasts for a company's future earnings, revenue or other metric. Consensus Estimate = Mean or Median of Contributing Analysts' Individual Forecasts

Consolidated Account Statement Funds, ETFs & Index Investing qualitative A single statement showing an investor's holdings across all mutual funds and demat accounts, linked by PAN. Test: holdings across all fund houses and depositories are aggregated under one permanent account number

Consolidated Financial Statements Financial Statements & Accounting qualitative Accounts that combine the parent company and all its subsidiaries as if they were a single economic entity. Test: subsidiaries are line-by-line consolidated with intra-group transactions eliminated and non-controlling interests shown separately

Consolidation Technical Analysis & Chart Patterns qualitative A period in which price moves within a bounded range without establishing a directional sequence. Test: successive highs and lows fall within a defined band, with neither the higher-high nor lower-low condition satisfied

Consumer Price Index Economy, Macro & Market Cycles index points An index tracking the price of a fixed basket of goods and services bought by households. CPI = (Cost of the Basket in the Current Period / Cost of the Basket in the Base Period) x 100

Contango Derivatives, Futures & Options qualitative A condition in which futures prices are above the spot price, and later expiries are priced above nearer ones. Test: Futures Price > Spot Price, with successively distant contracts priced progressively higher

Contingent Liability Financial Statements & Accounting ₹ crore A possible obligation whose existence depends on an uncertain future event, disclosed in the notes rather than recognised on the balance sheet. Test: an outflow is possible but not probable, or the amount cannot be measured reliably; disclose rather than provide

Contract Note Market Basics & Instruments ₹ The legally binding document a broker must issue after each trading day, itemising every trade executed and every charge levied. Net Amount = Trade Value +/- Brokerage + STT + Exchange Charges + SEBI Fees + Stamp Duty + GST

Contract Value Derivatives, Futures & Options ₹ The notional value of the underlying that one derivative contract controls. Contract Value = Lot Size x Current Price of the Underlying

Contrarian Investing Market Psychology & Behavioural Finance qualitative Deliberately taking positions against prevailing sentiment, on the argument that consensus is already in the price. Test: the position is taken because sentiment is one-sided, with an independent basis for believing the consensus is wrong

Convertible Bond Bonds & Fixed Income ₹ A bond that can be exchanged for a fixed number of the issuer's shares at the holder's option. Conversion Value = Conversion Ratio x Current Share Price; Conversion Premium = (Bond Price - Conversion Value) / Conversion Value

Convexity Bonds & Fixed Income ratio (x, times) The curvature in the relationship between a bond's price and its yield, correcting duration's straight-line estimate. Price Change % = -Modified Duration x Change in Yield + 0.5 x Convexity x (Change in Yield) squared

Core Inflation Economy, Macro & Market Cycles % Inflation excluding food and fuel, whose prices are volatile and driven largely by supply conditions. Core Inflation = Headline Inflation computed on the basket excluding food and fuel components

Corporate Action Corporate Actions, Dividends & Governance qualitative Any event initiated by a company that changes its securities or affects its shareholders' holdings. Test: the event alters the number, value, or form of the shares held, or distributes something to holders on a record date

Corporate Bond Bonds & Fixed Income qualitative A debt security issued by a company to borrow from investors rather than from banks. Corporate Bond Yield = Government Security Yield of the same maturity + Credit Spread

Corporate Governance Corporate Actions, Dividends & Governance qualitative The system of rules and practices by which a company is directed and held accountable to its shareholders. Test: independent board oversight, transparent disclosure, fair treatment of minority shareholders, and effective audit and risk functions

Correction Economy, Macro & Market Cycles % A decline of roughly 10% or more from a recent peak, short of the 20% that defines a bear market. Test: the index has fallen between 10% and 20% from its prior high

Correlation Risk & Portfolio Management ratio (x, times) A measure from -1 to +1 of how closely two assets' returns move together. Correlation = Covariance of A and B / (Standard Deviation of A x Standard Deviation of B)

Cost of Acquisition Indian Market, Regulation & Taxation ₹ The amount treated as having been paid for an asset, used as the base against which a capital gain is computed. Capital Gain = Sale Consideration - Cost of Acquisition - Transfer Expenses

Cost of Carry Derivatives, Futures & Options % The net cost of holding the underlying until a derivative's expiry, comprising financing cost less any income received. Futures Fair Value = Spot x (1 + Risk-Free Rate x Days to Expiry / 365) - Dividends Expected before Expiry

Cost of Equity Fundamental Analysis & Valuation % The return shareholders require for bearing the risk of owning a company's shares. Cost of Equity = Risk-Free Rate + Beta x Equity Risk Premium

Cost of Goods Sold Financial Statements & Accounting ₹ crore The direct cost of producing the goods or services actually sold during a period, principally materials and direct labour. COGS = Opening Inventory + Purchases - Closing Inventory

Counterparty Risk Risk & Portfolio Management qualitative The risk that the other party to a contract fails to perform its obligations. Test: performance of the contract depends on a specific party's solvency, with no guarantor standing behind it

Terms starting with C