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Can get $xxx
Refers to over-the-counter trading. I have a buyer who will pay $xxx for the stock ; usually a standard
markdown (1/8) from $xxx is applied to this price in bidding the seller for his stock. Antithesis of cost me.
Cannot compete
Used in the context of general equities. Cannot accommodate customers (i.e., compete with other market-
makers) at that price level, often due to not having a natural opposite side of the trade.
Cannot complete
Used in the context of general equities. Inability to finish an order on a principal or agency basis given
prevailing price instructions and/or market conditions.
Cap
An upper limit on the interest rate on a floating-rate note (F.R.N.) or an adjustable rate mortgage (A.R.M.).
Capital
Money invested in a firm.
Capital account
Net result of public and private international investment and lending activities.
Capital allocation decision
Allocation of invested funds between risk-free assets and the risky portfolio.
Capital asset pricing model (CAPM)
An economic theory that describes the relationship between risk and expected return, and serves as a
model for the pricing of risky securities. The C.A.P.M. asserts that the only risk that is priced by rational
investors is systematic risk, because that risk cannot be eliminated by diversification. The C.A.P.M. says that
the expected return of a security or a portfolio is equal to the rate on a risk-free security plus a risk premium.
Capital budget
A firms set of planned capital expenditures.
Capital budgeting
The process of choosing the firms long-term capital assets.
Capital expenditures
Amount used during a particular period to acquire or improve long-term assets such as property, plant or
equipment.
Capital flight
The transfer of capital abroad in response to fears of political risk.
Capital gain
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