Stock market terms starting with C

Coupon Rate Bonds & Fixed Income % The annual interest a bond pays, expressed as a percentage of its face value. Annual Coupon = Face Value x Coupon Rate

Covariance Risk & Portfolio Management % A measure of how two assets' returns vary together, unscaled by their individual volatilities. Covariance = Average of [(Return A - Mean A) x (Return B - Mean B)]

Cover Order Orders, Execution & Market Structure qualitative An intraday order that must be placed together with a compulsory stop-loss, allowing the broker to grant higher leverage. Test: entry and a mandatory stop-loss are submitted as one instruction; margin is computed from the distance between them

Covered Call Derivatives, Futures & Options ₹ Writing a call option against shares already owned, so the delivery obligation is covered by the holding. Maximum Gain = (Strike - Purchase Price + Premium) x Lot Size; Break-even = Purchase Price - Premium

Creation Unit Funds, ETFs & Index Investing shares The large block of ETF units in which new units are created or existing ones redeemed with the fund. Test: units are created or redeemed only in multiples of the specified block size, in exchange for the underlying basket or cash

Credit Growth Economy, Macro & Market Cycles % The rate of increase in bank lending to the economy. Credit Growth = (Current Outstanding Bank Credit - Year-Earlier Credit) / Year-Earlier Credit x 100

Credit Rating Bonds & Fixed Income qualitative An agency's opinion on an issuer's ability to meet its debt obligations, expressed on a letter scale. Scale in India runs AAA, AA, A, BBB, BB, B, C, D, with plus and minus modifiers within categories

Credit Risk Bonds & Fixed Income % The risk that a borrower fails to make interest or principal payments as promised. Expected Loss = Probability of Default x Loss Given Default x Exposure at Default

Credit Spread Bonds & Fixed Income bps The extra yield a bond offers over a government security of the same maturity, compensating for credit risk. Credit Spread = Corporate Bond Yield - Government Security Yield of the same maturity

Crude Oil Price Economy, Macro & Market Cycles % The price of crude oil, a key macroeconomic variable for India because most of its requirement is imported. Impact on Import Bill = Change in Price per Barrel x Annual Barrels Imported

Cup and Handle Technical Analysis & Chart Patterns qualitative A rounded base followed by a smaller, shallower pullback near the prior high, resembling a cup with a handle. Test: a rounded recovery to near the prior high, then a shallow consolidation typically retracing less than a third of the cup's depth

Currency Pair Market Basics & Instruments ₹ A quotation of one currency's value in terms of another, such as USD/INR, where the first currency is bought or sold against the second. Quote convention: BASE/QUOTE, where the price states how many units of the quote currency buy one unit of the base

Currency Risk Risk & Portfolio Management % The risk that exchange rate movements change the value of an investment or cash flow measured in the home currency. Return in Home Currency = (1 + Foreign Return) x (1 + Currency Change) - 1

Current Account Deficit Economy, Macro & Market Cycles % The excess of a country's payments for imports, services and transfers over its receipts from them. Current Account Balance = Trade Balance + Net Services + Net Primary Income + Net Transfers

Current Assets Financial Statements & Accounting ₹ crore Assets expected to be converted to cash, sold or consumed within twelve months or one operating cycle. Current Assets = Inventory + Trade Receivables + Cash and Equivalents + Short-Term Investments + Other Current Assets

Current Liabilities Financial Statements & Accounting ₹ crore Obligations a company must settle within twelve months, including trade payables, short-term borrowings and accrued expenses. Current Liabilities = Trade Payables + Short-Term Borrowings + Current Maturities of Long-Term Debt + Provisions + Other Current Liabilities

Current Ratio Fundamental Analysis & Valuation ratio (x, times) Current assets divided by current liabilities, measuring whether short-term obligations are covered by short-term assets. Current Ratio = Current Assets / Current Liabilities

Current Yield Bonds & Fixed Income % A bond's annual coupon expressed as a percentage of its current market price. Current Yield = Annual Coupon / Current Market Price x 100

Curve Fitting Indicators & Oscillators qualitative Tuning a strategy's parameters until it fits historical data closely, producing results that do not repeat on new data. Test: performance degrades sharply when parameters are perturbed slightly or when the rules are applied to unseen data

Cut-Off Time Funds, ETFs & Index Investing qualitative The deadline by which an application and its funds must reach a fund house to receive a given day's NAV. Test: both the application and the cleared funds are received before the stated cut-off for that scheme type

Cyclical Stock Market Basics & Instruments qualitative A share whose earnings rise and fall with the economic cycle, typically in sectors such as metals, cement, autos and construction. Test: earnings correlate strongly with GDP growth, commodity prices or credit conditions, with wide peak-to-trough swings

Terms starting with C