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Common stock equivalent
A convertible security that is traded like an equity issue because the optioned common stock is trading high.
Common stock market
The market for trading equities, not including preferred stock.
Common stock ratios
Ratios that are designed to measure the relative claims of stockholders to earnings (cash flow per share),
and equity (book value per share) of a firm.
Company, the
Used for listed equity securities and refers to over-the-counter trading. Public-traded corporation involved in
the corporate repurchase of its shares.
Company-specific risk
Related: Unsystematic risk
Comparative credit analysis
A method of analysis in which a firm is compared to others that have a desired target debt rating in order to
infer an appropriate financial ratio target.
Comparison universe
The collection of money managers of similar investment style used for assessing relative performance of a
portfolio manager.
Compensating balance
An excess balance that is left in a bank to provide indirect compensation for loans extended or services
provided.
Competence
Sufficient ability or fitness for ones needs. Possessing the necessary abilities to be qualified to achieve a
certain goal or complete a project.
Competition
Intra- or intermarket rivalry between businesses trying to obtain a larger piece of the same market share.
Competition ahead
Often used in risk arbitrage. Situation whereby another O.T.C. market-maker has transacted with Investment
bank at the stated market level (without being faded) before the present bid/offer has been made. For
example, if bear steams hits a Investment bank bid and we subsequently go down an eighth, followed by an
offering being received by Investment bank at this previously transacted price, Competition was aheadof
Investment banks.
Competitive bidding
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